The Economic Goal of Price Stability
Simulate a consumer's experience when dealing with unstable prices.
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Video Q&A
0-15 min
Stagflation, Explained!
OVERVIEW
What is “stagflation”? In this video assignment, students will learn what it looks like when an economy is experiencing “stagflation” and hear about several historical examples of when the US economy experienced stagflation.
Stagflation, explained! What is stagflation? Typically, high inflation tends to occur alongside a strong economy and low unemployment. When the economy is weak and unemployment is high, inflation is usually low. This relationship is known as the Phillips curve. However, sometimes that is not the case. When there is a combination of relatively high inflation and a very weak economy, economists typically call this stagflation. Precise definitions vary, but here in the US, it's safe to say we experienced two bouts of stagflation during the 1973 to 1975 and 1980 recessions when inflation was above 10%, even as the unemployment rate was high and rapidly rising. With the recent increase in inflation, people have questions about inflation, stagflation, and more. Check out the Cleveland Fed's Center for Inflation Research to better understand inflation and how it affects you and our economy.
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What is Inflation?
Learn what is and what is not inflation.
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Why Should You Care About Inflation?
Explain how inflation affects consumers' incomes, spending, and wages.
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Why Does the Fed care about inflation?
Explain what happens when inflation gets out of control.
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Disinflation, Explained!
Explain disinflation and how it differs from deflation.
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Shrinkflation, Explained!
Introduce the term "shrinkflation".
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Hyperinflation, Explained!
Introudce the term "hyperinflation"
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Deflation, Explained!
Introduce the term "deflation".
