Money Matters: An IMF Exhibit -- The Importance of Global Cooperation

Reinventing the System (1972-1981)

Part 5 of 7


Conflict &
(1871 - 1944)

Destruction &
(1945 - 1958)
The System
in Crisis

(1959 - 1971)
the System
(1972 - 1981)
Debt &

(1981 - 1989)
Globalization and Integration
(1989 - 1999)


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The 1970s ushered in many firsts: the first handheld calculator, the birth of the first test-tube baby, and the first personal computer. And, for the first time in history, high inflation joined a stagnant economy for a prolonged period of time. By 1979, this unprecedented combination had a new name: stagflation.


Unemployment office

Inflation Unchecked

Inflation was already underway in the early 1970s because of increased commodity prices, as well as excess liquidity created by countries no longer disciplined by the gold standard. Inflationary pressures increased when the dramatic rise in oil prices raised the price of manufactured goods and food. The resulting decrease in demand and production led to fewer jobs and a stagnant economy.


Would Floating Rates
Sink the System?
OPEC Takes Center Stage Petrodollar Problem
Recycling Petrodollars Stagflation Rush from the Dollar War on Inflation

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