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Trade balance shifts from surplus to deficit and continues throughout the 1970s.
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The Brazilian stock market crash impacted the U.S. thought trade, investment flows and more.
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The Nixon shock marked the end of the Bretton Woods system, and led to high inflation as well as wage and price freezes.
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Nixon put a 90-day freeze on wages and prices to help battle inflation.
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In 1972, the Dow Jones Industrial Average crossed the 1,000 mark, a symbol of the strong economy at the time.
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Economists begin using this term when inflation and unemployment rise at the same time.
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Major currencies began floating freely, the end of fixed exchange rates.
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Many people boycotted the meat industry for a week due to a rapid rise in price.
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The OAPEC declared an oil embargo, causing panic and an energy crisis, as well as a high rise in oil prices.
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The economy enters recession, the worst since the Great Depression. Unemployment and prices were extremely high. It lasted until March 1975.
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Nixon launches Project Independence, with a goal of full energy self-sufficiency by 1980.
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At this time, the SP 500 plunges 48% from January 1973 to December 1974.
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Reached 9% due to recession.
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Inflation reaches 11% annually due to the oil crisis, food prices and lacking of wage and price controls.
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Gerald R. Ford is inaugurated.
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Employee Retirement Income Security Act (ERISA) establishes individual retirement accounts.
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Created CFTC to regulate commodity features and options markets.
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Stagflation comes to an end after 2 years.
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There is a rise in Japanese Car Imports due to gas efficiency
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As a response to 1973 oil crisis and aimed to increase energy supplies and prepare for energy emergencies.
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In 1976, over 175 U.S. companies admitted to offering over $300 million in bribes since the year 1970.
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Formed to try and help the energy crisis.
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Aimed to transform airline industry, did things like removing government control over fares and routes.
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Established economic policy objectives of price stability and employment, and required Federal Reserve to report to the Congress on its monetary policy twice a year.
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At this time, inflation was at a whopping 13.3%.
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The monetary policy implemented by the Federal Reserve. Included interest rate increase, tight monetary policy, recession, unemployment, and debt.