The Great Inflation - One Minute History

From 1965 to 1982 a macroeconomic event known as “The Great Inflation” cast a shadow on the post-World War Two Global Monetary System. During this time, inflation rose from a rate of 1% a year, to its peak in 1980, of almost 15%. Jobs were lost as the unemployment rate hit 11%. In 1971, President Nixon halted the exchange of the US dollar for Gold, further dropping the value of the dollar. In 1973, Arab OPEC members imposed an oil embargo on the United States causing oil to go from $23 a barrel, to over $140 by 1980. The stock market lost half of its value and interest rates skyrocketed to a high of 20%, causing a painful but necessary recession. The Great Inflation led to a period of economic stagflation where inflation and unemployment rates rose to unacceptable levels, stunting economic growth.