Stagflation is an economic condition characterized by stagnant economic growth, high unemployment, and rising inflation. This unusual combination makes it difficult for policymakers to address the issues, as traditional methods to combat inflation can worsen unemployment and vice versa. The term gained prominence during the 1970s when many countries, including the United States, experienced this phenomenon due to oil price shocks and other factors. Stagflation challenges the conventional economic theory that inflation and unemployment have an inverse relationship, complicating efforts to stabilize the economy.