-
Overview of 70s and 80s
U.S. fiscal and monetary policies deliberately created a recession to combat inflation. -
1974 Info
Inflation Rate: 11%
Gross Domestic Product: $6,948 per capita
Unemployment: 5.64%
Discount Rate: 8-13%
The Fed continued raising the Fed funds rate in July 1974, and then dramatically lowered the rate by January 1975. 1973 oil crisis: the Organization of Petroleum Exporting Countries (OPEC) constrained the worldwide supply of oil.This event, combined with the overall energy shortage that characterized the 1970s, resulted in actual or relative scarcity of raw materials -
Period: to
Economics Timeline 1974-1989
-
1975 Info
Inflation Rate: 9.1%
Gross Domestic Product: $7,517 per capita
Unemployment: 8.5%
$1.00 in 1975= $4.52 today
Discount Rates: 5%-6.5% -
1976 Info
Inflation Rate: 5.8%
Gross Domestic Product: $8,297 per capita
Unemployment: 7.7%
Discount Rates: 4.75%-5.5% -
1977 Info
Inflation Rate: 6.5%
Gross Domestic Product: $9,143 per capita
Unemployment: 7.1%
Discount Rates: 6%-6.5% -
1978 Info
Inflation Rate: 7.6%
Gross Domestic Product: $10,225 per capita
Unemployment: 6%
Discount Rates: -
1979 Info
Inflation Rate: 11.3%
Gross Domestic Product: $11,302 per capita
Unemployment: 5.8%
Discount Rates: 10.25%-15.5% By August 1979, when Paul Volcker was sworn in as Fed chairman, drastic action was needed to break inflation’s stranglehold on the U.S. economy. Volcker’s leadership as Fed chairman during the 1980s, though painful in the short term, was successful overall in bringing double-digit inflation under control. -
1980 Info
Inflation Rate: 13.5%
Gross Domestic Product: $12,180 per capita
Unemployment: 7.1%
Discount Rates: 8.5%-20%
The Monetary Control Act of 1980 required the Fed to price its financial services competitively against private sector providers and to establish reserve requirements for all eligible financial institutions. The act marks the beginning of a period of modern banking industry reforms. Following its passage, interstate banking proliferated, and banks began offering interest-paying accounts a -
1981 Info
Inflation Rate: 10.3%
Gross Domestic Product: $13,526 per capita
Unemployment: 7.6%
Discount Rates: 12%-20% -
1982 Info
Inflation Rate: 6.2%
Gross Domestic Product: $13,933 per capita
Unemployment: 9.7%
Discount Rates: 8.5%-15% -
1983 Info
Inflation Rate: 3.2%
Gross Domestic Product: $15,000
Unemployment: 9.6%
Discount Rates: 9.25%-9.66% -
1984 Info
Inflation Rate: 4.3%
Gross Domestic Product: $16,539 per capita
Unemployment: 7.5%
Discount Rates: 8.25%-11.75% -
1985 Info
Inflation Rate: 3.6%
Gross Domestic Product: $17,589 per capita
Unemployment: 7.2%
Discount Rates: 7.75%-9% -
1986 Info
Inflation Rate: 1.9%
Gross Domestic Product: $ 18,427 per capita
Unemployment: 7%
Discount Rates: 5.66%-6% -
1987 Info
Inflation Rate: 3.6%
Gross Domestic Product: $19,394 per capita
Unemployment: 6.2%
Discount Rates: 6.75%-7.25% -
1988 Info
Inflation Rate: 4.1%
Gross Domestic Product: $20,703 per capita
Unemployment: 5.5%
Discount Rates: 6.5%-9.75% -
1989 Info
Inflation Rate: 4.8%
Gross Domestic Product: $22,039 per capita
Unemployment: 5.3%
Discount Rates: 8.25%-9.75%
