this post was submitted on 20 May 2025
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[–] mildlyusedbrain@lemmy.world 4 points 19 hours ago

Not quite, stagflation requires both high inflation and unemployment which we did see concurrently during COVID.

But it also needs low or negative economic growth which again we did see during COVID but growth and employment have been up so we haven't had a long period of stagflation.

The final key thing that I don't think is technically required is that the fed can't lower rates to drive growth because inflation is too high hence the economy gets stuck. It feels like this could be where we are heading but haven't quite been in a prolonged enough period to qualify for yet.