Stagflation Explained in 60 Seconds #Shorts

Added: 2026-05-27

Stagflation is an economic phenomenon characterized by the simultaneous occurrence of high inflation, high unemployment, and low economic growth, which contradicts the traditional Phillips Curve theory that suggests a trade-off between inflation and unemployment; this occurs when supply shocks, such as the oil price quadrupling in the 1970s, break the normal economic rules, forcing central banks to make difficult policy choices between fighting inflation (which may deepen recession) or fighting unemployment (which may allow prices to spiral).