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Main Entry: stag
Pronunciation: 'stag
Function: noun
Inflected Form(s): plural stags
Etymology: Middle English stagge, from Old English stagga; akin to Old Norse andarsteggi drake
1 or plural stag : an adult male red deer; also : the male of various other deer (especially genus Cervus)
2 chiefly Scottish : a young horse; especially : a young unbroken stallion
3 : a male animal castrated after maturity -- compare STEER 1
4 : a young adult male domestic fowl
5 a : a social gathering of men only b : one who attends a dance or party without a companion

I don't get the "stag" part.

[Don W]

Stagflation was a combination of the words "stagnant" and "inflation". The economy was stagnant, but inflation was high, ergo that word.