Stagflation is the simultaneous occurrence of high inflation, slow economic growth, and high unemployment, a term popularized by British politician Iain Macleod in the 1960s. The phenomenon gained prominence during the 1970s following supply shocks like the oil crisis and challenged traditional economic theory by showing inflation and unemployment can rise together. Economists attribute stagflation to supply shocks or misguided government policies that restrict growth while expanding the money supply.