Watch this video below by TD Economics which explains the term stagflation, published on June 16th, 2022, which you may find of interest. You may also be thinking about your current financial goals and possible next steps, and if so please book an appointment with a TD advisor to discuss them. This content is brought to you by TD Stories. For more tips designed to help you build financial confidence,
What is stagflation? TD Economics explains.
If you follow news reports and media headlines, you might be hearing the term "stagflation" thrown around a lot lately. But what exactly does it mean, and is Canada's economy currently experiencing, or headed toward, stagflation?
According to Leslie Preston, Senior Economist at TD, stagflation is a combination of stagnation and inflation. The term was originally coined in the United Kingdom to refer to a period of high inflation and high unemployment – but it isn't necessarily a precise term with a strict definition.
We are hearing the term used today because there's worry that the economy may be headed in this direction, but the current state of the economy does not fit the definition,” Preston said.
In this video, Preston discusses stagflation, including whether it accurately describes Canada's current economy and whether the risk of a recession fits within it.