What is stagflation

Full name of stagflation stagflation (Stagflation),cheap timberland 6 inch boots, in economics, especially in macroeconomics, especially economic stagnation (Stagnation) and high inflation (Inflation), unemployment and sluggish economic phenomena exist. Popular to say is that rising prices, but economic stagnation. It is the result of long-term development of inflation.

stop stagflation caused by the reason:

First, the expected psychological factors, the Government has taken to curb inflation and tightening monetary policy, but the community has previously expected inflation to continue, it will inflation is reflected in the company's future costs,vibram five fingers sale, resulting price rise;

Second, supply side shock induced, such as the oil crisis caused by rising oil prices, firms could not immediately reflect its costs, the pressure in the high-cost , the difficult to survive, the unemployment rate therefore increased.

70s of last century the U.S. had stagflation, national standard of living fell sharply. The heavy volume in the stock market stagflation means that large volumes of stock, but the price is stand still!


the root causes of inflation:
20 Century 70 on behalf of the stagnation point of the surface phenomena caused by the oil crisis, but deeper look is determined by Keynesian policies, due to the capitalist countries over Keynesian policies, too much emphasis on state intervention in the economic development role, the State controls its own development constraint for the economy too much, thus ignoring the role of the market itself, the results against the law to promote economic development of the economy does not work running, gradually, such as inflation and deflation, the outbreak of the capitalist economic crisis began, the Western economic stagnation phenomenon began to appear. Of economic stagnation is a capitalist countries can not avoid the contradictions of capitalism itself or by the final analysis, the limitations caused.

stagflation of the main features:
and overproduction of traditional cyclical crises, since the 20th century, 70 years structural economic crisis, from the time point of view much longer than the periodic crises; from the performance of Formally, the structural crisis of stagnation or slow production is often slow growth; from the magnitude of view, the structural crisis, not during the simultaneous development of all countries, sometimes associated with a dollar crisis, the energy crisis, sometimes associated with trade imbalances, the credit crisis; from the direct result of , the main triggered by the structural imbalance.
economic stagnation is the main feature of this period. As the phenomenon of stagflation, stagnation or slow development of both production and inflation phenomenon. Economic stagnation caused by the deep reason is that productivity and production relations in Western developed countries, domestic and foreign policy of economic intervention in the integrated product of alternating period of adjustment. Economic deterioration and stagnation at the same time, the development of social productive forces in Western countries are facing major adjustments: Old industrial, old technology,onitsuka-tiger mexico-66 white black red, old technology, embodied in old products , the new technology, embodied in new products, new adjustments. In the United States, 19,vibram five fingers moc,501,965 in the labor market increased by 9.8%, an increase of 40.5% 19,651,980, 19,501,960 years of employment was 6.9 million, 19,701,980 people in 1860 increased, but the number of unemployed and the unemployment ratio increased. Unlike in the past, there has been regional, sectoral structural unemployment, so that the solution to the problem of unemployment facing new challenges.