Why did the oil crisis happen? o started in October 1973 ooil embargo oin response to the U.S. decision to re- supply the Israeli military
started in October 1973 oil embargo in response to the U.S. decision to resupply the Israeli military
What's the impact of the oil crisis? o the global economy entered recession ooil price spikes depressed demand growth o High inflation o High unit labor cost
the global economy entered recession oil price spikes depressed demand il price spikes depressed demand growth High inflation High unit labor cost
OPEC oil price s/bbl, real price in 2005 US dollars 100 2005 dollars 6 Current dollars 80 85 05 Global commodity prices 1995=100: IMF indexes 150 125 Base metals 100 75 Agricultura raw materials 65 67 75
Productivity and costs in the G7 %ooya, US, UK, Canada, Germany, France, Italy, Japan Unit labor cost 10 Compensation Productivity 656769717375779 OECD consumer price inflation Other OECD United states 65676971
From the Economic Report of the Presidentt For eight years economic policy and the news about the LUS] economy have been dominated by inflation. The story has been a frustrating one Inflation seemed a Hydra headed monster. growing two new heads each time one was cut off. The problem was not confined to the United States indeed inflation was worse in most other countries There is now a great deal of inflation built into our system. For one thing, both workers and employers are now used to high increases in money wages which reflect the expectation of rapid inflation The public is highly sensitive to infla tion and reacts in an inflationary way to any news which confirms its expectation of inflation 1. January 1974, Chapter 1