The “Cost-Push Inflation” Myth and the 1970s Stagflation

The following table connects economic and political events with FX price and oil price movements. It is obvious that the OPEC initially only reacted to inflation and the devaluation of the dollar. From the outbreak of 1973 war, however, the picture changed and OPEC became more aggressive with oil price hikes.

 

Further reading:
Black Gold: The End of Bretton Woods and the Oil-Price Shocks of the 1970s, David Hammes (University of Hawaii) and Douglass Wills (University of Washington), The Independent Review, v. IX, n. 4, Spring 2005, ISSN 1086-1653

 

 

 

 

 

George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.
See more for 8b.) Economic History

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