This study investigates the relationship between stagflation and price stability and full employment and four economic scenarios and the economic condition. The data used in the study were obtained from government publications and were analyzed using hierarchical multiple regression. The standard inferential apparatus were employed. Give independent variables were found to be significant in explaining the causes of stagflation. These were: absolute change in M1, oil embargo of 1974, corporate profits, output per hour, and Iranian crisis of 1979. In conclusion, the causes of economic instability do not rest with one single theory or factor, but a combination of several.

The study was designed to examine the causal relationship between the Venezuelan inflation and the monetarist variables--money supply--and the structuralist variables-- exchange rate and balance of payments. The data (1964-1982) was gathered from the International Financial Statistic Yearbook, 1983 and the Statistical Yearbook, 1974, 1982. Chapter I is an introduction to the research problem. Chapter II does a review of the related literature. Chapter III deals with the methods and procedures for treating the data. Chapter IV presents an statistical analysis of the data. And, Chapter V contains a summary of the study and its findings, conclusions and recommendations. The study only found a significant relationship between inflation and the monetarist variables money supply and GNP, though supporting the monetarist theory. A similar investigation is suggested, but selecting a longer time period, other.variables, and more refined methodologies and analysis.

This study tests the relationship between certain economic scenarios and the state of the economy in regard to inflation and recession. Using data gathered from government publications, the economy was divided into periods of inflation, recession, and recession recovery. These periods were regressed against variables representing four schools of economic thought: monetarist scenario, structural scenario, power scenario, and micro, or supply side scenario. This study concludes that because of the complex nature of the economy, all representative variables have both positive and negative effects on the economy and no one scenario holds the key to economic stability.