1970's economic timeline(Liam, Jose, Fernando, Joseph)

By 609781253

  • Automated Clearing House Interbank Payment System

    A private company is created to clear checks

  • President Richard Nixon announces his "New Economic Policy"

    To increase demand for U.S. goods in foreign markets, President Nixon devalues the dollar and ends the gold convertibility of the dollar.

  • Inflation increases

    Due to President Richard Nixon lifts wage-and-price controls.

  • The 1973 Middle East War occurs

    War caused by increased oil prices that generated even higher inflation and a trade deficit.

  • The oil embargo triggers the 1974-1975 world recession

    The FDIC deposit insurance limit increases from $20,000 to $40,000 because of inflation.

  • Third World loans are threat to the capital position of banks

    Eight of the largest U.S. banks are owed $37 billion.

  • Several banks license VISA

    Other changes include the First National City Bank changes its name to Citibank.

  • Inflation accelerates

    President Jimmy Carter places emphasis on restoring economic growth instead of controlling inflation.

  • Iranian Revolution occurs

    Middle East oil production is cut, and international oil prices soar.

  • President Jimmy Carter appoints Paul Volcker to the chairmanship of the Federal Reserve Board (FRB)

    Volcker concentrates on controlling the money supply with an interest rate at thirteen percent and unemployment at eleven percent.