The Global Stagflation

  1. Join Medium with my referral link - slashdotted
Photo by Kenny Eliason on Unsplash

Stagflation, a mix of high inflation and weak development, has become the new normal for the global economy.

The war in Ukraine, Chinese lockdowns, supply-chain disruptions, and stagflation risk impede growth.

Stagflation is not a new phenomenon in the global economy, which had two severe spells of stagflation in the latter half of the twentieth century.

What is the difference between stagflation and recession?

A recession is a typical economic cycle that causes the economy to slow and unemployment to grow. However, it typically lasts about a year and is not characterized by elevated pricing for everything. Stagflation is characterized by sustained weak economic development, continuous layoffs, and rising inflation.

What is the difference between stagflation and inflation?

Stagflation occurs when unemployment is exceptionally high, economic development is slow, and inflation is high. Inflation is the rate at which the prices of goods and services in an economy rise.

Stagflation and recession are increasingly being used to characterize the state of the economy.

On Tuesday, the World Bank warned that global economies were in danger of stagflation, if not recession.

Stagflation is a combination of inflation and poor economic circumstances, such as weak GDP growth.

High inflation is more probable when the economy is robust and consumer demand is strong.

As the globe confronts a time of high inflation and decreasing GDP, development organizations are raising the alarm about the potential of stagflation.

If you enjoy reading this and want to support our job, consider signing up to become a Medium member. It’s $5 a month, giving you unlimited access to stories on Medium. I’ll earn a small commission if you sign up using my link.