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Stagflation is a term used to describe a prolonged period of slow economic growth combined with rising prices, or inflation. It is a combination of two economic terms, "stagnation" and "inflation," and is typically used to describe a period of economic decline. During a period of stagflation, an economy experiences a slowdown in production and employment, while prices continue to rise. This combination of circumstances can be difficult to manage, as traditional policies used to combat slow growth, such as monetary easing, are often times ineffective in controlling inflation. The term "stagflation" was first coined in the late 1960s, and has been used to describe various periods of economic difficulty throughout history. It is most commonly associated with the high inflation and slow growth of the 1970s, when a number of developed countries, including the United States, experienced a period of stagflation. During this period, inflation rates were at their highest levels since the Great Depression, while economic growth was slow. In the U.S., the combination of slow economic growth and high inflation led to a period of economic malaise, in which unemployment rates rose and wages stagnated. Stagflation has been seen as a sign of economic weakness, as it