Stagflation is defined as a prolonged period in which an economy experiences persistently high inflation, high unemployment, and stagnant demand. The current economic challenges arising from the Russia-Ukraine war are a major factor contributing to high inflation hence higher food and energy prices globally.
Major world economies are experiencing record-high inflation rates. For instance, the US inflation rate is at 8.5 percent, a 40-year high. This can largely be attributed to the massive monetary easing that happened between 2020 and 2021 to cushion the economy from the effects of covid-19.
