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Vietnam War
During the Vietnam War, the US government substantially increased spending on the war, without implementing corresponding tax increases. This led to a surge in demand for products, a high trade deficit, a larger national debt, and a period of high inflation known as ¨The Great Inflation.¨ -
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Collapse of the Bretton Woods System
Many countries were trading their foreign money to the US for gold; this led to loss of confidence in the dollar, inflation, and growing concern about the US trade deficits. As a result, under the leadership of President Nixon, the USA suspended the dollar's convertibility to gold and ended the US dollar's fixed exchange rate to end, which effectively ended the Bretton Woods System. -
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Stock Market Crash
Many factors including Watergate, Vietnam etc. -
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1973-1975 Recession
Worst recession since the Great Depression. -
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Arab Oil Embargo
During the Yom Kippur War in 1973 when Egypt and Syria attacked Israel, OAPEC announced an oil embargo against all countries supporting Israel, which led to high gas prices for some countries, including the USA. -
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Iranian Revolution
The Iranian Revolution of 1979 and Iran hostage crisis led to many economic problems for the US primarily because of disruptions in oil supplies and market instability. -
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1980 Recession
The 1980 recession was primarily caused by a combination of high inflation, rising interest rates, and the impact of the energy crisis. -
Implementation of Reaganomics
Newly elected president Ronald Reagan implemented new economic policies that were focused on tax cuts, deregulation, and increased defense spending, and were intended to stimulate economic growth and reduce inflation. Even though it had a negative impact on the budget deficit, it contributed to a period of huge economic boom in the mid 1980s. -
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1981-1982 Recession
One of the worst downturns since the Great Depression. It was primarily caused by a combination of factors, including the 1979 oil crisis, a tight monetary policy implemented by the Federal Reserve to curb inflation, and the lingering effects of the 1980 recession. -
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Stock Market Crash of 1987
Also know as "Black Monday", the Stock Market Crash of 1987 was caused by rising global interest rates, a declining dollar, increasing trade deficit, and concerns over inflation.