During 1973-74, there was steep rise in the oil price mainly because of fall in the oil output from the Arab nations; the price of Saudi Arabian oil went from $2.59 to $11.65 barrel, a hike of almost 350%. This resulted in steep rise in the energy price for the countries like Macropoland - an natural gas and oil importer country. So there was substantial rise in cost of production for the Macropoland economy, which resulted in large fall aggregate supply. It is this fall in aggregate supply that was responsible for large inflation and unemployment rate (a situation called stagflation) during this period. In other words, it was cost pull inflation (driven by high crude oil price) that was responsible for stagflation in Macropoland economy during 1973-1974.…
Turned to issuing paper money but created inflation of over 9,000% vs North’s 80%, no uniform currency…
Domestic issues in the United States stemmed from the U.S.'s foreign issues. Because of the Vietnam War and the oil embargo, America's economy reached inflation (Doc C). The war used a majority of America's money for its troops as well as supplying other countries that need America's help. The oil embargo by the Arab…
In the early years of the 1960s, inflation remained at about the same rate, 2 percent. However, between 1967 and 1969 the percentage of inflation rose to 6 percent. Lyndon Johnson proposed a 10 percent “war tax” to stop the inflation, but in return he had to accept a $6 billion funding cut to his “Great Society” programs. These programs included laws that upheld civil rights, public broadcasting, Medicare, Medicaid, environmental protection, aid to education, and his "War on Poverty." Even though inflation was stopped, and it was minimal to begin with, there was still public concern for the economy. As with almost every war, there was a downturn in the economy. George McGovern suggested a cut in the military budget due to the “appalling waste of money and manpower” (Doc. H)…
In other words, people were without jobs and were unable to pay for the high prices set by business owners due to this fiscal…
went up to an extreme amount if money, thus, even more people could not afford…
country. For example, for the rst week of August 1999, the price of reformulated gasoline in…
The European economy during the time experienced inflation due to the increase in demand for food and the…
In order to maintain the level of consumer prices, the president of Venezuela imposed price controls by setting the price ceilings. Government officials claim “companies cause shortages on purpose, holding products off the market to push up prices. This month, the government required price cuts on fruit juice, toothpaste, disposable diapers and more than a dozen other products.” However, bad consequences of the price ceilings set by the government were inevitable in terms of shortages in supply, decreased market size, elimination of allocative efficiency and black markets.…
Results from second contact training session, patient was able to touch his eyes without closing his eyes. Several attempts with the right eye, Mr. Joseph almost got the contact to stay in the eye. However the contact was half on the eye, the patient blink and Len fell out. Another training session was schedule for…
“The great inflation was blamed on oil prices, currency speculators, greedy businessmen and avaricious union leaders. However, it is clear that monetary policies, which financed huge budget deficits and were supported by political leaders, were the cause.” Except these facts, there was also a reason why high inflation happened, the easy-money policies of the American central bank, which were at first designed to generate full employment, later reversed its policies, raising interest rates to 20 percent, caused interest rates skyrocketing.…
faced the oil shock, and increase in export prices due to a labor shortage that…
In the 70s – oil crisis. War in the middle East between Israel and its neighbours made Arab states impose an oil embargo on Western Europe – stopped exporting oil unless at very high prices. This impacted both Eastern and Western Europe. Consequentially growth levels in Eastern bloc countries fell. Various bottlenecks in the economy became increasing obvious i.e. Consumer goods situation where supply simply couldn’t meet demands of consumers. Especially in…
Mary Louise Pratt wrote A Contact Zone, a short story about how many different cultures interact through Transculturation and contact zones. A contact zone is defined as “is the gap in which transculturation takes place- where two different cultures meet and inform each other, in uneven ways” (mariexotoni). In my owns words, a contact zone can be where two different people from different backgrounds, teachings, and traditions come together and share their experiences. Contact zones can be seen in every social situation, every social gathering, and every major culture event. However, some people will feel like the “other” in these situations. I have felt like the “other” in social situations and in sports. Feeling like the “other” doesn’t sound like a good thing because you learn from others mistakes and make great friends that will always be there. It doesn’t feel good to be the “other” but its easy to learn from others mistakes from watching instead of partaking in the activities.…
Prices of goods and services – including my favorite goodies – surged. This reminds me of an incident that occurred during this era, emphasizing my personal experience of the stunning price hikes. I once went to a grocery store to purchase an item. But to my utmost surprise, the size of the item was much smaller. The seller had intentionally decreased the size of the item to offset the additional cost incurred from the increment in taxes. Upon seeing the expression of disappointment and disbelief on my face like a map, the seller responded frustratingly, “Kotey, the NDC government has imposed VAT on everything; it is killing us.” I stood there stiff and speechless as a simple question run through my brain, “What is VAT and how does that concern me?” Since that day, I followed the implementation process of most public policies and pro-poor programs, trying to decipher the spinoff effects on citizens – especially in deprived areas –welfare. And I was, still I’m, fascinated of how these economic policies dictate the pace in local, regional and national economic development. Indeed, these practical experiences points to the genesis of my passion to study Economics. A passion born out of curiosity to understand how clearly outlined, well planned and carefully implemented public policies facilitate economic…