What were the Causes Behind the Great Inflation of the 1970s?

► Check out the ETFs and stocks I'm buying BEFORE I buy them - 40% annual returns! - (FREE 7-Day trial) ► I use Epidemic Sound, sign up for a 30-day free trial - In this video, we'll explore what caused the Great Inflation of the 1970s and what policies were put in place to try and fix the situation. If you're curious about the history of the 1970s, then this video is for you! We'll explore what caused the Great Inflation of the 1970s and how it was fixed. We'll also talk about Paul Volcker and his role in the inflation crisis. Finally, we'll look at stagflation, the economic condition that followed the inflation crisis. Welcome to StreetSmack: the one-stop-shop for all things money. I'm going to provide you with financial education and smart money tactics so that you can make informed decisions about how to best invest your hard-earned cash and make more of it. At StreetSmack, investing will be made simple. No more complex formulas or jargon-filled investment advice. I will provide you with easy-to-understand money tips and resources so that you can build and make the most of your wealth without having to worry about the hassle of researching hundreds of different investments or strategies. Business Inquiries Only: streetsmack@icloud.com #StreetSmack Credit: Michael Bryan / Federal Reserve Bank of Atlanta (editorial framework) ----------------------------------------------------- DISCLAIMER: ADDITIONAL DISCLAIMER: The material and information contained herein is for information purposes only. The information is not intended as an offer or solicitation for the purchase of stock or any financial instrument. The information and materials contained in these pages and the terms, conditions and descriptions that appear, are subject to change without notice. It is not intended as research, a recommendation, advice or an offer or a solicitation to buy or sell any financial product or service, or to be used in any way for evaluating the merits of participating in any transaction. Past performance is not indicative of future returns. Jayme/Ghost Capital Media LLC and affiliates do not provide tax, investment, trading, legal or accounting advice. This content is not intended to provide, and should not be relied on for, tax, investment, trading, legal or accounting advice. You should consult your own tax, investment, legal and accounting advisors before engaging in any transaction. The information and material on this website is provided "as is" without any warranties, representations or guarantees of any kind, either express or implied. Your use of any information which is proprietary to Jayme/Ghost Capital Media LLC or a third-party information provider, shall only be used on individual devices without any right to redistribute, upload, export, copy or otherwise transfer the information to any centralized interdepartmental or shared device, directory, database or other repository nor to otherwise make it available to any other entity/person/third party, without the prior written consent of Jayme/Ghost Capital Media LLC. This material is provided on a confidential basis and may not be reproduced, redistributed or transmitted, in whole or in part, without the prior written consent of Jayme/Ghost Capital Media LLC. Any unauthorized use is strictly prohibited. Without limiting any of the foregoing, to the fullest extent permitted by applicable law, in no event shall Jayme/Ghost Capital Media LLC and affiliates have any liability for any special, punitive, indirect, or consequential damages (including lost profits or lost opportunity) in connection with the information contained in this material, even if notified of the possibility of such damages. You are solely responsible for your own actions. © 2023 Ghost Capital Media LLC. All rights reserved....(read more)

---

LEARN ABOUT: Investing During Inflation REVEALED: Best Investment During Inflation HOW TO INVEST IN GOLD: Gold IRA Investing HOW TO INVEST IN SILVER: Silver IRA Investing

---

What Caused the Great Inflation of the 1970s? The 1970s were a period of economic turmoil, with several countries around the world experiencing rampant inflation. This phenomenon, often referred to as the "Great Inflation," had significant implications for governments, businesses, and households alike. Understanding the factors that led to this inflationary crisis is crucial in order to prevent such occurrences in the future and ensure economic stability. One of the primary causes of the Great Inflation was the significant increase in oil prices. In 1973, the Organization of Arab Petroleum Exporting Countries (OAPEC) declared an oil embargo against several countries, including the United States. This decision led to a substantial reduction in oil supplies and a subsequent surge in oil prices. As oil is a crucial input in various industries, this sudden increase in its cost had a ripple effect on the overall economy, triggering higher production costs and reducing consumers' purchasing power. Another factor contributing to the Great Inflation was the expansionary monetary policy pursued by many governments during this period. In an attempt to stimulate economic growth, governments increased the money supply by printing more money and lowering interest rates. However, this excessive liquidity in the economy fueled inflationary pressures. When combined with rising energy costs, it created a vicious cycle where businesses faced higher production costs and subsequently increased prices, leading to a further rise in inflation. Labor market dynamics also played a role in the inflation of the 1970s. The era witnessed a notable increase in labor union power and frequent strikes, demanding higher wages and better working conditions. As these demands were met, labor costs skyrocketed, putting additional pressure on businesses to increase prices. This pushed inflation even higher and eroded the purchasing power of individuals and households. Additionally, expectations of future inflation played a significant role in exacerbating the Great Inflation. As individuals and businesses anticipated rising prices, they adjusted their behavior accordingly. This included hoarding goods, purchasing durable goods sooner rather than later, and pushing for higher wages and prices. These actions further fueled inflationary pressures, leading to a self-reinforcing cycle. Lastly, the international economic environment contributed to the Great Inflation. The breakdown of the Bretton Woods system in 1971, which had previously fixed exchange rates to the US dollar, led to a more volatile foreign exchange market. Currencies fluctuated, creating uncertainty and disrupting international trade. As a result, imported goods became more expensive, adding to inflationary pressures. In conclusion, the Great Inflation of the 1970s can be attributed to a combination of factors. The increase in oil prices due to an embargo, expansionary monetary policies, labor market dynamics, expectations of future inflation, and the breakdown of the Bretton Woods system all contributed to this period of high inflation. Lessons from this tumultuous period have shaped subsequent monetary policies and provided valuable insights on the importance of maintaining price stability and managing the various factors that can lead to inflation. https://inflationprotection.org/what-were-the-causes-behind-the-great-inflation-of-the-1970s/?feed_id=141492&_unique_id=651922f90f2d6 #Inflation #Retirement #GoldIRA #Wealth #Investing #1970s #CNBC #consumerpriceindex #CPI #economy #economynews #everythingmoney #fed #fedratehike #federalreserve #financialeducation #gasprices #globalnews #howtomakemoney #inflation #inflationexplained #interestrates #investingmadesimple #jeromepowell #makemoney #Markets #oil #paulvolcker #Powell #recession #smartmoneytactics #stagflation #stockmarket #Stocks #streetsmack #thegreatinflation #useconomy #usinflation #volckerrule #volckerruleexplained #wealth #InvestDuringInflation #1970s #CNBC #consumerpriceindex #CPI #economy #economynews #everythingmoney #fed #fedratehike #federalreserve #financialeducation #gasprices #globalnews #howtomakemoney #inflation #inflationexplained #interestrates #investingmadesimple #jeromepowell #makemoney #Markets #oil #paulvolcker #Powell #recession #smartmoneytactics #stagflation #stockmarket #Stocks #streetsmack #thegreatinflation #useconomy #usinflation #volckerrule #volckerruleexplained #wealth