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Stag. A speculator (O speculation) who subscribes to new issues in the expectation of selling his allotment of securities at a profit when dealings in them begin. new issue market.

Stagflation. A situation in which rapid inflation is accompanied by stagnating or declining output and employment. It is a characteristic of cost-push inflation rather than demand-pull inflation. Companies experience increased costs of raw materials and/or of labour, which reduces their profitability and forces them to raise their own prices and cut investment. The government is then faced with the dilemma that measures to reduce the rate of inflation generated in this way may exacerbate unemployment prices and incomes policy).

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