Stagflation and recession are increasingly being used to describe where the economy might be headed. The World Bank warned on 14th June 2022, that global economies were at risk of stagflation if not recession. "The world economy is again in danger," David Malpass, president of the World Bank, said in the latest edition of the Global Economic Prospects report. "It is facing high inflation and slow growth at the same time. Even if a global recession is averted, the pain of stagflation could persist for several years - unless major supply increases are set in motion." Explain the main differences between stagflation and recession, if we had to face one, which one would be less painful?
