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Stagflation Discussion Question

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● What factors contributed to the stagflation of the 1970s? The factors contributed to the stagflation of 1970s is to rise the oil prices. Monetary policy tried lowring unemployment but they had raising in inflation rate. Moreover, the banks started changing policies where they raised the interest rates for cars, housings, lands...etc. It turned out that the cause of inflation was oil prices and it had a negative impact on businesses. ● How did Volcker deal with the high inflation? Volcker took out inflation rates by contractionary monetary policy. Not only this, but on the other hand he ...
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