When the U.S. economy was stagnating, someone made money

Everything that should be earned has been earned! The wood you want to earn is earned!

Financially minded people make money.

The period of stagflation in the United States refers to the 70s of the twentieth century.

Stagflation in the United States was mainly in the 70s of the 20th century, around 1970-1983 to be precise.

From an external point of view, the first is the outbreak of the fourth Middle East war in October 1973, which triggered an oil crisis, and oil prices suddenly more than tripled. The crisis lasted for 3 years and had a severe impact on the US economy.

Second, at the end of 1978, affected by the Iran-Iraq war, global oil production was affected, plummeting from 5.8 million barrels per day to less than 1 million barrels per day. Oil prices began to soar in 1979, from $13 per barrel to $34 in 1980, as production plummeted.

Stagflation has dealt a fatal blow to the U.S. economy.

1. U.S. industry has experienced a long period of declining production. The economic crisis of 1973 caused a decline in industrial production in the United States, which lasted 18 months; The economic crisis of 1979 caused a decline in U.S. industrial production that lasted about 44 months.

2. The number of business failures, bank bankruptcies, and unemployment are all the highest in the post-war period. The number of bankruptcies reached 25,300, and the unemployment rate was at its highest.

3. The sharp decline in investment in fixed assets and the price of goods have seriously affected the economic development of the United States. The "stagflation" phase was the most difficult stage in the United States after the end of World War II.

4. Economic recession is usually accompanied by the latest economic recession. Throughout the stagflation period, the market has undergone 6 corrections and has been in a bear market about half of the time. Stagflation has seriously affected the development of the United States.

70s of the twentieth century. In the 70s of the last century, the United States experienced three rounds of severe stagflation.

During this period, the U.S. economic growth slowed, and unemployment and inflation were high.

In parallel, the Phillips curve fails, that is, monetary policy is no longer able to adjust prices by affecting the output gap. The intrinsic cause of stagflation in the U.S. economy is the decline in the momentum of U.S. economic growth after the war.

External Age Factors:The **** spike triggered by the two oil shocks. The Middle East War in 1973 and the Iran-Iraq War in 1979.

It triggered two oil crises, during which the first production fell sharply, resulting in a sharp increase in production.

Bretton Woods system.

After the collapse, the depreciation of the US dollar further raised energy**, driving the United States raw materials and consumer goods **general**, forming a vicious circle of "product **** - household consumption decreased - corporate profits declined - economic output declined".

United StatesEconomic stagflationIt was in the 70s of the twentieth century, because a certain economic phenomenon could not be completely measured by time, so it could not be specific to a certain year, which should be around 1970 and 1983.

Stagnation inflation.

English: stagflation), abbreviated as stagflation or stagnation inflation.

In the economic enlightenment of the ruler of the economy, especially macroeconomics.

In particular, it refers to economic phenomena in which economic stagnation, unemployment and inflation continue to rise at the same time.

This concept is noteworthy in part because of the postwar macroeconomic theory that inflation and recession cannot go hand in hand, and because stagflation and fiscal deficits are widely perceived.

Again, once you start, it's hard to **.

Stagflation in politics is measured by the inflation misery index (simply the sum of the unemployment rate and the inflation rate) and was used to influence the US elections in 1976 and 1980.

Economists offer two main causes of stagflation:

1) Economic production capacity is reduced by negative supply. For example, the oil crisis caused oil ****, production costs.

Rising prices and declining profits led to an increase in goods** and a slowdown in the economy.

2) Another reason is improper economic policy. For example, a bank.

Excessive growth of monetary distress is tolerated, and excessive regulation of commodity and labour markets is permitted.

The above content reference: Encyclopedia - Stagnation Inflation.

From 1970 to 1983, the United States fell into an unprecedented position in historyEconomic stagflationAt the same time that production is declining and unemployment is soaring, prices are not only not **but generally large**, becoming highInflation rate, a unique economic phenomenon in which high unemployment and low economic growth coexist.

Stagflation has had an extremely negative impact on private investment, with a large number of businesses closing, workers losing their jobs, and economic growth stagnating. During the entire period of stagflation, the United States has undergone 6 rounds of adjustments, and the bearish move precedes the recession, and the stabilization also precedes the economic stabilization. While Western economies are experiencing stagflation, the expansion of credit in the United States has contributed to the economic development of less developed countries and the expansion of the world.

From 1951 to 1979,Federal ReserveExperienced three chairs Martin, Burns andMiller。Martin is the longest-serving chair in Fed history, Miller is the shortest, and Burns' tenure runs through the great stagflation of the '70s.

Martin is considered the founder of the Fed's modernity. He adopted the operating rule of "going against the wind" and focused on the central bank.

and the credibility of Sun Jingqi's policy, using short-term interest rates as a tool and stabilizing prices as the priority goal of monetary policy. Unlike the real bill principle, Martin's focus shifted from assets to commodities, and his thinking was conservative in the belief that prices must fall when prices rise.

While preventing inflation, it is also preventing deflation. From the early 50s to the mid-60s, the US CPI increased year-on-year.

With a slight fluctuation of around 2%, the allocation of manuscripts only slightly exceeded 3% between 1957 and 1958. The first fifteen years of Martin's tenure can be considered American history.

on another period of "Great Détente".