Stagflation, stagnating or even declining production of a capitalist economy accompanied by ongoing, accelerated rising prices—inflation. In the epoch of free competition capitalism the chief ways of overcoming the crisis were the falling price, and the devaluation of capital in the commodity and production form whereas under state-monopoly capitalism, a crisis does not lead to lower prices. To the contrary, prices are rising rapidly in spite of declining production and increasing unemployment. This was very clearly manifested, during the world crisis of 1974-75, when the slump in production was accompanied by a gigantic rise in prices that in several developed capitalist countries (Great Britain, Italy) reached 15-20 per cent annually. In today’s conditions, rising prices in a crisis period are caused, first of all, by the policy of the monopolies, which, aided by the state, take a variety of measures to maintain the market price at a high level even in crisis periods. Various anti-crisis measures carried out by the capitalist state also contribute to keeping prices high (e. g., state purchases). Stagflation aggravates economic crises and complicates the ways of overcoming them.