Why was inflation higher in the 1970s? - Economics Help
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Why was inflation higher in the 1970s? - Economics Help
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Three reasons why inflation today is different from the 1970s
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Back in the late 1970s, when inflation in the United States was out of control, the Federal Reserve under Paul Volcker raised interest rates to nearly 20%. Inside the U.S., it caused a deep recession,unemployment above 10%, factories closing, families losing homes. But the real devastation came abroad. Across Latin America, Africa, and Asia, countries that depended on the dollar suddenly collapsed. The “Volcker Shock” didn’t just fight inflation; it destroyed economies that were built on dollar-
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