Economic stagnation occurs when an economy experiences little to no growth over an extended period, often accompanied by high unemployment, weak consumer demand, and low business investment. One of the most effective ways governments can combat stagnation is through public spending and infrastructure projects. These efforts can help revitalize the…

Stagflation is a unique and challenging economic condition where stagnation—characterized by slow or no economic growth—occurs simultaneously with inflation, the general rise in prices. This combination is particularly problematic because the traditional tools used to combat inflation, such as raising interest rates, can worsen stagnation, and vice versa. Understanding stagflation,…