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What is STAGFLATION? How to deal with Stagflation?

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تم إضافة السؤال من قبل Jagaber Sadiq Noorul Hudha , Senior Accountant , VAMSHA RETAIL VENTURES PRIVATE LIMITED
تاريخ النشر: 2022/12/27
WINASI  BOMA
من قبل WINASI BOMA , Chief Executive Officer , ST lukes hospital

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

 

Rishad Ismail
من قبل Rishad Ismail , Finance Director , Al Rashid Trading & Contracting Company

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.

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