The history of stagflation: A review of Iranian stagflation

The term “stagflation” was first used by a British politician, Iain Macleod in 1965, to describe the simultaneous occurrence of inflationary period during stagnation. On those days, United Kingdom was experiencing an inflationary period accompanied by rising unemployment and lack of growth in market demand and business activities. Since then the worldwide economy has faced several stagflationary episodes. This research aims to review the history of stagflation models and theories. Also it tries to investigate the previous stagflation episodes worldwide and their causes. Finally, it will have a special focus on the history of inflation and unemployment in Iran and occurrence of stagflation in Iran. This study also discusses about the possible explanations of current stagflation in Iranian economy.