What was the great inflation?

Great inflation was a period of global economic difficulties in the age of 70. Economic policies were accused of allowing great inflation to grow as great as that, and this period was closely analyzed in history to provide lessons to prevent future episodes of this nature. One of the remarkable features of great inflation was the violation of a generally recognized idea at a time when it was not possible for a high inflation and inflation rate to be together, a concept supported by Keynesian Theory, a popular approach to the economy. One of them was free monetary policy as a result of World War II, which was to support employment and economic growth. Interest rates were kept low and the money supply was maintained high. This has contributed to the development of inflation, as an easily available credit and money tends to increase prices. Many governments worried about high thanAměstnost and decided to continue to maintain low interest rates in the hope of improving the situation at work, which worsens inflation.

The 1970s were also marked by the energy crisis. Prices of gasoline increased at the pump and created the ripple because the production of goods and services was more expensive, which led to rising costs of many consumer goods. In addition, agricultural uncertainty could be observed during great inflation. These factors have joined the aim of raising prices for many necessary goods more expensive and increasing inflation at a time when many people were unemployed and could not afford to buy the necessary things.

The stock market lost significant value during great inflation, which contributed to greater economic uncertainty, undercut confidence among investors and further stress on the economy. Many nations have experienced economic problems during this period until changes in economic policy have been made to makeIncreased interest rates and the money supply reduced the prices to a more manageable level. Other measures and controls were used when nations tried to get inflation rate.

While this period officially lasted from 1973 to 1975, many nations have received problems up to 20 years after great inflation. Economic bubbles such as an explosive real estate market in Japan and the growth of the technology industry in the United States