These are the countries with the greatest stagflation in the world, we tell you

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Last Monday, the highest monetary authority of the European Union spoke about the greatest threat that exists, today, in the economy: stagflation . Thus, its president – ​​the Frenchwoman Christine Lagarde – stated that the European Central Bank does not currently see “elements of stagflation” in the euro zone. However, what the ECB does predict is a new intensification of inflation . At least in the short term. In this way, the top president estimated a new general increase in prices due to an additional increase in the price of energy - intensified by the need to face the energy transition -.

However, and despite the reluctance of the ECB, there are many analysts who do contemplate a stagflationary situation in the old continent. Furthermore, not long ago the organization led by Largarde failed miserably in its forecasts – which anticipated a Phone Number Data temporary inflation. Therefore, will this new prediction be the definitive alarm signal before the feared stagflation? Only time will provide the answer with certainty. However, in Economía 3 we analyze this concept of stagflation that unleashes panic in markets and investors. Likewise, we will review some of the most illustrious cases of this 'unwanted' economic term.



Stagflation concept Stagflation is the perverse monetary phenomenon that combines a sharp rise in prices with a generalized stagnation of economic activity. In economic terms, it translates into an intense increase in prices linked to a fall in the Gross Domestic Product (GDP). What are your symptoms? Stagflation is generated mainly by a shock to aggregate supply. A clear example could be the closure of the economy due to a pandemic or the shortage caused by a war . Both situations cause an increase in the cost of production factors. Faced with this situation, the immediate response, on the part of companies, is to make an adjustment -via price- that is transferred directly to the consumer.