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@article{186151,
        author = {Abhishek Shukla},
        title = {The Economic Consequences of Long-Term Stagflation: A 21st-Century Analysis},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {12},
        number = {6},
        pages = {1795-1798},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=186151},
        abstract = {The re-emergence of stagflation—a period of high inflation coupled with stagnant economic growth and elevated unemployment—in the 2020s has challenged the post-Great Moderation consensus in macroeconomics. This paper provides a 21st-century analysis of the economic consequences of long-term stagflation, arguing that its effects are more profound and structurally damaging than the transient supply-shock model of the 1970s suggests. We identify the unique drivers of modern stagflation, including deglobalization pressures, the climate-energy nexus, and unprecedented levels of public and private debt. The analysis then delineates the multidimensional consequences: the erosion of real incomes and the exacerbation of inequality; the paralysis of monetary and fiscal policy; the distortion of investment and innovation; and the triggering of financial repression and debt crises. The paper concludes that without a nuanced policy mix targeting supply-side reforms, strategic public investment, and coordinated international action, the world economy risks a prolonged period of low growth and social instability, marking a definitive end to the era of benign macroeconomic conditions.},
        keywords = {Stagflation, Inflation, Monetary Policy, Fiscal Policy, Debt Dynamics, Supply Shocks, Inequality, Secular Stagnation, Climate Economics.},
        month = {November},
        }