Taryn Phaneuf

Stagflation describes a rare set of circumstances in the economy when inflation and stagnation occur at the same time. Inflation, which is something we're all pretty familiar with, is the rate at which prices increase. A little inflation is seen as a sign of a normal, healthy economy, and the Federal Reserve targets a low, stable inflation rate of around 2%.

Stagflation describes a rare set of circumstances in the economy when inflation and stagnation occur at the same time. Inflation, which is something we're all pretty familiar with, is the rate at which prices increase. A little inflation is seen as a sign of a normal, healthy economy, and the Federal Reserve targets a low, stable inflation rate of around 2%.

Stagflation describes a rare set of circumstances in the economy when inflation and stagnation occur at the same time. Inflation, which is something we're all pretty familiar with, is the rate at which prices increase. A little inflation is seen as a sign of a normal, healthy economy, and the Federal Reserve targets a low, stable inflation rate of around 2%.

But when prices rise too fast, it makes it hard for consumers and businesses to keep up. Then there's stagnation. That describes an economy that is basically stalled. It's experiencing little, if any, growth. In a situation like that, demand in the economy is very low. Businesses have pulled back and they might even be cutting staff.

But when prices rise too fast, it makes it hard for consumers and businesses to keep up. Then there's stagnation. That describes an economy that is basically stalled. It's experiencing little, if any, growth. In a situation like that, demand in the economy is very low. Businesses have pulled back and they might even be cutting staff.

But when prices rise too fast, it makes it hard for consumers and businesses to keep up. Then there's stagnation. That describes an economy that is basically stalled. It's experiencing little, if any, growth. In a situation like that, demand in the economy is very low. Businesses have pulled back and they might even be cutting staff.

Consumers are spending less money because they're unemployed or they're worried about being unemployed. And when demand is low, prices tend to fall. So as you've probably realized, inflation and stagnation don't usually go hand in hand. With inflation, the economy is running hot, but with stagnation, it's slowing down. So when these two things happen simultaneously, it means that something is off.

Consumers are spending less money because they're unemployed or they're worried about being unemployed. And when demand is low, prices tend to fall. So as you've probably realized, inflation and stagnation don't usually go hand in hand. With inflation, the economy is running hot, but with stagnation, it's slowing down. So when these two things happen simultaneously, it means that something is off.

Consumers are spending less money because they're unemployed or they're worried about being unemployed. And when demand is low, prices tend to fall. So as you've probably realized, inflation and stagnation don't usually go hand in hand. With inflation, the economy is running hot, but with stagnation, it's slowing down. So when these two things happen simultaneously, it means that something is off.

Economists look for some key signs. Are prices rising? Is productivity slowing or flat? Is unemployment going up? If all these things are happening, that's a recipe for stagflation. Wages factor in as well. If wage increases are keeping pace with prices, consumers have a better chance of weathering the storm. But it's unlikely that wages will increase if productivity slows and unemployment rises.

Economists look for some key signs. Are prices rising? Is productivity slowing or flat? Is unemployment going up? If all these things are happening, that's a recipe for stagflation. Wages factor in as well. If wage increases are keeping pace with prices, consumers have a better chance of weathering the storm. But it's unlikely that wages will increase if productivity slows and unemployment rises.

Economists look for some key signs. Are prices rising? Is productivity slowing or flat? Is unemployment going up? If all these things are happening, that's a recipe for stagflation. Wages factor in as well. If wage increases are keeping pace with prices, consumers have a better chance of weathering the storm. But it's unlikely that wages will increase if productivity slows and unemployment rises.

It's a double whammy. As prices rise across the board, consumers might tighten their budgets. The antidote to that budget crunch would be things like pay raises. But if the economy is stagnating, those opportunities are less probable.

It's a double whammy. As prices rise across the board, consumers might tighten their budgets. The antidote to that budget crunch would be things like pay raises. But if the economy is stagnating, those opportunities are less probable.

It's a double whammy. As prices rise across the board, consumers might tighten their budgets. The antidote to that budget crunch would be things like pay raises. But if the economy is stagnating, those opportunities are less probable.

Can you tell us about that? The misery index is calculated by adding together the unemployment and inflation rates. The higher it is, the more miserable the economy feels. The good news is that right now the misery index is low.

Can you tell us about that? The misery index is calculated by adding together the unemployment and inflation rates. The higher it is, the more miserable the economy feels. The good news is that right now the misery index is low.

Can you tell us about that? The misery index is calculated by adding together the unemployment and inflation rates. The higher it is, the more miserable the economy feels. The good news is that right now the misery index is low.

Not quite as low as the years preceding the pandemic, but nowhere near the recent highs during the pandemic and the Great Recession or historic peaks during the 1970s and 80s.

Not quite as low as the years preceding the pandemic, but nowhere near the recent highs during the pandemic and the Great Recession or historic peaks during the 1970s and 80s.