Why Was Inflation A Problem After World War II? When the war ended, government agencies removed their controls on the economy. This released pent up demand. People raced to buy goods that had been rationed, while businesses rapidly raised prices they had been forced to keep low during the war. The result was rapid inflation.
Why Is Argentina Interest Rate So High? As is always the case with rapid inflation, the price increase in Argentina was fueled by rapid expansion of the money supply. The seigniorage earned from monetary expansion served the needs of the government as a method of taxation that was difficult to avoid and politically easy to
What Was The Result Of Stagflation Quizlet? High inflation rate, slow economy. Prices increase and people have less money to spend . You just studied 6 terms! What is the result of stagflation? Stagflation refers to an economy that is experiencing a simultaneous increase in inflation and stagnation of economic output. Stagflation was first recognized
What Caused 1970s Stagflation? Rising oil prices should have contributed to economic growth. In reality, the 1970s was an era of rising prices and rising unemployment; the periods of poor economic growth could all be explained as the result of the cost-push inflation of high oil prices. What caused the 1970s inflation? The 1970s saw
What Caused Stagflation In The 1970s? Rising oil prices should have contributed to economic growth. In reality, the 1970s was an era of rising prices and rising unemployment; the periods of poor economic growth could all be explained as the result of the cost-push inflation of high oil prices. What was the 1970s stagflation? Stagflation