Podcast
Questions and Answers
What economic event in the 1990s demonstrated that lessons from the 1980s panic were not learned?
What economic event in the 1990s demonstrated that lessons from the 1980s panic were not learned?
Which year had the highest number of shares traded on the New York Stock Exchange according to the provided data?
Which year had the highest number of shares traded on the New York Stock Exchange according to the provided data?
What was a significant characteristic of the investors in the stock market during the 1990s?
What was a significant characteristic of the investors in the stock market during the 1990s?
How was the velocity of money in the stock market indicated?
How was the velocity of money in the stock market indicated?
Signup and view all the answers
What is described as an economic hot spot resulting from a large influx of money?
What is described as an economic hot spot resulting from a large influx of money?
Signup and view all the answers
What trend was observed in the value of shares traded on the New York Stock Exchange from 1980 to 1995?
What trend was observed in the value of shares traded on the New York Stock Exchange from 1980 to 1995?
Signup and view all the answers
What does the term 'feeding frenzy' refer to in the context of the stock market during the 1990s?
What does the term 'feeding frenzy' refer to in the context of the stock market during the 1990s?
Signup and view all the answers
What is indicated as a major issue with politicians in understanding economics?
What is indicated as a major issue with politicians in understanding economics?
Signup and view all the answers
Who is mentioned as a highly popular president during the time discussed?
Who is mentioned as a highly popular president during the time discussed?
Signup and view all the answers
What key economic concepts were noted as misunderstood during the Panic of 1980?
What key economic concepts were noted as misunderstood during the Panic of 1980?
Signup and view all the answers
What perception might today's politicians have regarding the lessons from the 1980 crisis?
What perception might today's politicians have regarding the lessons from the 1980 crisis?
Signup and view all the answers
What characterization is given to politics in the discussion?
What characterization is given to politics in the discussion?
Signup and view all the answers
What might today's politicians wrongly believe regarding the actions of former President Carter?
What might today's politicians wrongly believe regarding the actions of former President Carter?
Signup and view all the answers
What does the term 'financial hair-trigger' refer to as introduced by the author?
What does the term 'financial hair-trigger' refer to as introduced by the author?
Signup and view all the answers
What was a significant consequence encountered by foreign investors during the Panic of 1980?
What was a significant consequence encountered by foreign investors during the Panic of 1980?
Signup and view all the answers
Study Notes
The Panic of 1980
- The Panic of 1980 was triggered when the demand for money plummeted and velocity skyrocketed.
- Many of the politicians involved in the 1979-80 economic crisis had little understanding of the economic forces at play.
- There is a likelihood that politicians from the period may not have learned from the 1980 crisis.
- Some politicians are still in office, and have not taken responsibility for their mistakes.
Ronald Reagan
- Ronald Reagan, a professional actor, was the president of the United States from 1981 to 1989.
- He oversaw the freezing of Nicaraguan assets in 1985.
The Financial Hair-Trigger
- The 1990s reveal that little was learned from the 1980 panic.
- The text introduces the idea of a "financial hair-trigger" as a risk factor for future economic calamities.
The 1987 Crash and 1991 Recession
- The 1987 crash and 1991 recession were both addressed by increasing the money supply.
The 1997 Stock Market Bubble
- The 1997 stock market bubble was fueled by a feeding frenzy of investors.
- Investors were buying and selling stocks like gambling addicts in a casino.
- This bubble is the largest in world history in terms of the number of people and amount of money involved.
- The velocity of money in the stock market during this period was very high.
New York Stock Exchange
- The number of shares traded on the New York Stock Exchange increased significantly between 1980 and 1995.
- The value of shares traded also increased significantly between 1980 and 1995.
Velocity and the Demand for Money
- Measuring velocity and the demand for money accurately is difficult.
- However, it is clear that massive amounts of money were moving quickly through the stock market during the 1997 bubble.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Explore the key economic events from the Panic of 1980 to the 1997 stock market bubble. This quiz covers the roles of politicians, the responses to crises, and the concept of a 'financial hair-trigger.' Test your understanding of how these events shaped economic policies in the U.S.
