Question

There are several economists who believe that The United States is entering stagflation now or will soon enter stagflation in the future. Homework: Case study Find an article that explains “Stagflation of the 1970’s in The United States”. Summarize the article including the cause of stagflation and how stagflation was stopped. Express and support your opinion if The United States is in now or entering a period of stagflation. What should the government do to, if anything improve the current economic situation?

Answer 1

Stagflation within the 1970's by Barry Carl August Nielson updated Feb25 , 2020.

The economists until 1970 was of the opinion that there's associate degree inverse relationship between inflation and state id est once inflation is high state are low.They believed that increase

within the demand for product crystal rectifier to rise in costs so corporations expand and rent additional employees, so reducing state .In 1970 there was {stagflation|inflation|rising costs} in US which

suggests growth was slow and there was rise in prices.

really in 1970, there was inflation , rising state, and poor economic process owing to price push inflation of high oil costs.This wasn't in terms of economist theory that

declared that if the economy slows down,increase in pecuniary resource can cause rise in value and fall in state .

therefore in 1970 within the US ,there was rising oil costs , high inflation , state and recession and also the explanation for of these was rising oil costs.

so as to regulate inflation Milton Friedman believed that the Fed ought to follow constrictive financial policy.

In 1979 the economic expert theory was enforced.

Stagflation means that slow growth with rising inflation.Stag inflation will occur if policies of the govt.

injury traditional functioning of the govt..Economists ar of the opinion that US can enter recession in 2020 owing to the trade wars .

Business round the world can suffer and go down and as a result markets can tumble down.This will cause losses in jobs .

The government ought to stop an excessive amount of cash to enter the economy in too less time therefore on stop rising prices from happening throughout recession.Milton Friedman believed that

the reason behind inflation is simply too abundant cash chasing deficient merchandise.

it's necessary for the Fed to exactly anticipate the short term and future performance of the economy.The aim of the Fed is to stay the costs within the economy

stable and increase employment upto the most level.This can be achieved through financial policy.