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.
Further readings:
- Inflation Targeting: Methods, Drawbacks and Benefits
- Indian Economy Notes For UPSC Exam [Download PDFs]
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