Financial Term Of The Day- “Stagflation”.

Posted on January 8, 2008
Filed Under Series - Financial Term Of The Day! |

financial term logo1 Stagflation:
Stagflation = Stagnation + Inflation.

Now, stagnation is a condition where the economy is growing at a very low rate, which is known by the GDP of that country.And inflation is the rate of rise in the prices of various commodities over time. Stagflation is when inflation and stagnation happen simultaneously. More specifically stagflation is defined as a state of very low or almost zero economic growth accompanied with high inflation and high unemployment. US is in state of stagflation right now and will be for most of year 2008 - according to the analysts.

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Comments

3 Responses to “Financial Term Of The Day- “Stagflation”.”

  1.   
    Bhaskar on January 9th, 2008 1:31 pm

    I never heard stagflation before but I knew stagnation and inflation before.. nice to see the co-relation between all these. The series of financial terms is very beneficial for novice people who know a little bit here and there like me. Continue increasing our knowledge with such posts. Thanks.

  2.   
    zerzis on August 19th, 2008 6:17 pm

    Thanks for the comment Bhaskar. I am glad the articles are helping you.

    Regards,
    saurabh

  3.   
    Gold falls 20% in last month!! : Indian Equity Investment Guide on August 21st, 2008 2:08 pm

    [...] as it is coupled with high inflation, globally shaken equity markets, US recession, or rather stagflation. India plays a very important role in controlling the gold prices globally because India is the [...]

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