What is Stagflation? The Economic Storm Affecting Your Wallet

Stagflation is a combination of high unemployment combined with slow (or stagnant) economic growth. The slow economic growth is defined as a period of negative growth in a country’s gross domestic product (GDP). What makes stagflation such a thorny problem is that for stagflation to exist inflation also has to be rising.

This creates a condition where demand for goods and services weakens which in turn makes it difficult for businesses to hire workers. And that’s why stagflation is usually the precursor to a recession.

In this video we'll take a quick look at the relationship between inflation and stagflation and why you can't have one without the other. We'll also visit the history of this term and also how it affects your personal finances including your investments.

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