The stagflation of the 1970s and the New Economy of the 1990s were similar in that both

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Both stagflation in the 1970s and the New Economy of the 1990s were the result of shifts in the aggregate supply curve. In the 1970s, stagflation was caused by a decrease in aggregate supply due to a supply shock (in this case, an increase in oil prices), while in the 1990s, the New Economy was fueled by technological advances that shifted the aggregate supply curve to the right. Both of these events led to a combination of low unemployment and high inflation, which is characteristic of a situation where aggregate supply shifts more than aggregate demand.

The Stagflation of the 1970s and the New Economy of the 1990s