ECON 120 Stagflation of The 1970s Financial Crisis Discussion

Watch the above videos. Once you have done this respond to the questions below. To receive full credit, please reply with a minimum of 4-5 sentences in length to each bullet point below (including when replying to 2 of your peers).

• 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.