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Not true. When the oil crisis hit in the 70s for example, inflation spiked. OPEC wasn't a monetary phenomenon.
by crdoconnor 9y ago
Not true. When the oil crisis hit in the 70s for example, inflation spiked. OPEC wasn't a monetary phenomenon.
- thehardsphere 9y agoOPEC did not cause the inflation, nor did the increasing price of oil. During the same period, the US fully abandoned the gold standard and the Federal Reserve pursued a policy of loose money. Here's a brief history: http://www.investopedia.com/articles/economics/09/1970s-great-inflation.asp http://www.investopedia.com/articles/economics/09/1970s-grea...