Economist Frederic Emam Zade writes today that the phenomena of “stagflation” has set in, describing the term as a recession accompanied by inflation. Stagflation is marked by a dangerous mix of high inflation (high and increasing prices) and low or negative growth. Emam Zade, in an interview with Hoy newspaper, said this is the worse scenario that can befall an economy and that it produces a difficult situation for the authorities because measures that could be taken via taxes to assuage recession would ultimately stimulate further inflation. On the other hand, monetary measures to control inflation cause recession. He explained furthermore that only part of the economy is in stagflation, not all sectors. While the manufacturing sector is hurting most, service exporters are doing well. Emam Zade says the formula should be to attack inflation reining in excess money in circulation, while taking measures to stimulate the sectors of the economy that are flagging.