HIST 173 Study Guide - Midterm Guide: Capital Flight, Money Supply, Keynesian Economics
Document Summary
The end of the postwar boom in the early 1970s ushered in a period of stagnation and slow growth not just in the us but throughout the entire capitalist world. The economic problems of the 1970s were unprecedented. Economic growth was anemic and the economy regularly fell into recessions. At the same, however, it was also plagued by inflation. Nixon, ford, and carter were unable to deal with it. Finally, to bring down inflation, carter endorsed a program of spending cuts and a contraction of the money supply by the federal reserve, which produced a deep recession, further undermining his popularity with the public. The economic boom came to an end in the 1970s because of increased investments overseas without receiving proper benefits, a greater amount of imports than exports, and nixon took the us off the gold standard. Western europe and japan industrializing allowed for them to have an increase in their market shares.
