1970s Stagflation

Stagflation in the 1970s was a challenging economic period marked by the unusual combination of stagnant economic growth, rising unemployment, and high inflation—prices increasing rapidly. Typically, inflation occurs when the economy is growing quickly, but during stagflation, both growth slowed and prices surged, creating conflicting economic pressures. This was worsened by oil crises, which increased energy costs and contributed to inflation, while economic policies struggled to control it without worsening unemployment. The result was a difficult situation for policymakers, as they had to combat rising prices without hurting economic growth further.