GO
Loading...

Stagflation: CNBC Explains

While moderate inflation is actually a good thing for a healthy economy, inflation can also occur when the economy is stagnant. When this situation occurs, it is called stagflation. There are many reasons stagflation can occur, but the classical example is a supply shock, such as an oil shortage. But what are the mechanisms that cause stagflation? Salman Khan of the Khan Academy explains.

From this video, you’ll understand:

  • The economic environment required for stagflation
  • Factors that contribute to stagflation
  • How demand, utilization, and price influence stagflation



Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Latest Special Reports

  • A logo sits on a sign at the World Economic Forum in Davos, Switzerland, on Thursday, Jan. 23, 2014.

    Coverage of the 2015 World Economic Forum’s annual meeting in Davos, Switzerland.

  • NYSE traders

    Go inside the world of exchange-traded funds with CNBC's coverage from the ETF industry's biggest event of 2014.

  • Advisor-centric content with guest columns covering practice management, investment strategies and marketing/social media.

Central Banking Explained

Corporate Accounting Explained