Regarding the economy and "stagflation".

[PM Martin]

Stagflation is when the economy is growing at a lethargic pace/contracting, yet there is a high level of inflation (examples): Growth 2.5% / Inflation 10.0% -or- Growth -1.5% / Inflation 6.0%

What happens if there is (examples) strong growth: 4.5% / Inflation 5.5%? What would this be considered?

[PM Martin]

1. kick

[billyoc]

2. Normal inflation, I believe.

[PM Martin]

3. Even if inflation slightly outpaces the rate of growth, that is

generally not a problem then?

[Doctor Cynic]

4. GDP growth is always adjusted for inflation, so the above example is an inflationary boom.

[ProfessorGAC]

8. Nominal GDP Growth Is Not Adjusted

Real GDP growth is, as you said. It's adjusted to a fixed, agreed upon value of the currency at some set year. For instance through the 90's, 1986 was used. But, nominal GDP growth is just determined by year over year.
GAC

[JVS]

5. I would call that relative stagflation or excess inflation . Such a situation should be...

correctable through monetary policy though, as it requires only a minor change to bring inflation under growth.

[PM Martin]

6. kick

[ProfessorGAC]

7. Just Normal Inflation

Also, many economists don't use the stagflation term with regard to inflation, but to the combination of monetary value deflation and poor growth rate.

So, it's really a matter of opinion, but the conventional thought is that any dimunition of buying power during a period of poor growth is stagflation.

I would surmise that your other scenario is just an inflationary recession, which most of them are.
GAC

[roamer65]

9. We're in "stagflation" as we speak. The inflation figures are "fudged".

Go to www.shadowstats.com and look at the "Annual Consumer Inflation" graph.

Inflation is running around 8% currently. This is by the same measurement used in 1980.

[PM Martin]

10. kick