18 Questions
According to Friedrich Hayek and Milton Friedman, what was the primary cause of stagflation in the 1970s?
Government intervention in economies
How did the US government's decision to stop linking the dollar to gold affect the stock market in 1973-1974?
Caused a crash in the stock market
Which economic concept is characterized by a decline in economic growth, high unemployment, and soaring prices?
Stagflation
What is one of the main characteristics of neoliberalism according to the text?
Deregulation of industries
Which belief system advocates for reduced government spending, deregulation, and free trade?
Neoliberalism
What was the codified strategy of the US Treasury Department, the World Bank, the IMF, and the WTO that promoted neoliberal principles?
Washington Consensus
What was the Gold Standard in the global exchange system?
A monetary system where paper money was freely convertible to gold
During which period did the Great Depression occur?
During a general decline in economic activity
What is a recession in economic terms?
A business cycle contraction with a decline in economic activity
How did some economists argue that the gold standard contributed to the Great Depression?
It limited the circulating money supply, reducing demand and consumption
What was a drawback of the Gold Standard system during World War I?
Countries depleted their gold reserves to fund their military efforts
What system emerged after the Gold Standard era towards Fiat Currencies?
Fiat Currencies system not backed by gold reserves
During which period did the US President Richard Nixon announce the temporary suspension of the dollar's convertibility to gold?
1968-1973
What was the main purpose of the General Agreement on Tariffs and Trade (GATT)?
Reducing hindrances to free trade
In the early 1970s, what event led to a sharp rise in oil prices due to an embargo imposed by OAPEC?
Yom Kippur War
What economic theory led governments to pour money into their economies, causing overspending and inflation?
Keynesianism
What impact did the Organization of Arab Petroleum Exporting Countries (OAPEC) embargo have on Western economies?
Economic recession
What was the consequence of the US moving away from the gold standard in the early 1970s?
Increase in fiat currencies
Explore the causes of stagflation following the 1973-1974 stock market crash that ended the Bretton Woods System. Learn about economists Friedrich Hayek and Milton Friedman's arguments regarding government practices and monetary policies during this period.
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