... can see that the period of late 1970s and early 1980s is a typical example of stagflation of the economy, which is the combination of low growth rate, in other words the “stag”, together with high ... growth of the money supply, and the government can cause stagnation by excessive regulation of goods markets and labor markets, either of these factors can cause stagflation. Excessive growth of the ... or the “flation” in the term. By the time of 1980, when U.S. President Jimmy Carter was running for re-election against Ronald Reagan, the misery index (the sum of the unemployment rate and the...