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Stagflation is a sitution inwhich there is loss of money buying power accompained by lack of economic growth which is normally noted by factors like high unemployment rate, high pricess of basic commodities, it is actually a dificult circumstance because sorting out one element results into another problem, however this can be sorted by reducing debt, prioritizing, decreasing operational cost, automation,diversification of portifolio and acquiring of assets
Stagflation is a context where an economy encounters an economic recession and inflation growth simultaneously. It is a unique context where in a normal context there is a strong positive correlation between economic growth and inflation. i.e. When an economy grows, the general price level of goods and services traded in that economy will rise and unemployment will decline. It is expected that there will considerable number of countries including the US to experience stagflation in. The state is in dilemma in policy making in the event of a staglation whether to intervene through fiscal policy to boost the economic growth thereby letting the inflation climb further or alter the monetary policy to curtail the inflation at the expense of economic growth.
