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Oil-exporting
countries found themselves with so much money, they could not spend
it fast enough. Some had small populations; many were still at early
stages of industrialization. They could not import enough from the
countries that bought their oil to keep from piling up enormous
dollar surpluses.
The
world economy would contract if all that money was taken out of
circulation (i.e., not spent or loaned to someone else to spend).
Oil exporters needed investment outlets for their petrodollars.
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