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DB 3: Stagflation

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Watch the above videos. Once you have done this click on the above link “Stagflation DB” and create a thread with at least one page answering and explaining the following:

  • What factors contributed to the stagflation of the 1970s?
  • How did Volker deal with the high inflation?
  • Did high oil prices cause the stagflation or was it something else?
  • Is the Fed independent? If so, how do our leaders ensure they maintain the best interests of the public?
  • How does Milton Friedman establish his view that inflation is a monetary issue?
  • According to Friedman, do trade unions cause inflation by pushing up wages and the cost of production?
  • After you post your narrative, reply to at least two other student’s comments. Explain why you agree, or better yet, find others that take a different position and explain why you disagree.

 

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