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The blend of economic stagnation and inflation is a challenge to the contemporary macroeconomic study. The causes, influence and policy implications of “stagflation” have been academically controversial. This paper starts with the connections between energy crises and stagflation to research the causes of “stagflation” in the 1970s and analyze the realistic impact of energy crises. It then comparatively studies the current economic landscape and the landscape in the 1970s for similarities and differences, digs into the origin of the current macroeconomic situation, and on such basis proposes policy suggestions.

The “Stagflation” Risk and Policy Control: Causes, Governance and Inspirations