Rising prices, high unemployment, slow economic growth are the causes of stagflation. Due to oil embargoes, and as a result of fiscal and monetary policies, stagflation occured in the 1970s. You can read about the Inflation in Economy- Types of Inflation, Inflation Remedies [UPSC Notes] in the given link.
The combination of rising inflation and a weak economy led to stagflation. Stagflation is caused by a shift of the aggregate supply curve to the left.
- Inflation Targeting: Methods, Drawbacks and Benefits
- Indian Economy Notes For UPSC Exam [Download PDFs]
Fiscal Policy in India – Objectives, Components, Fiscal Consolidation, FRBM Act, 2003