Assignment:
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.
- Review the video: Segment 207: Stagflation in the 1970s and Stagflation was not caused by Cost-Push factors - Milton Friedman.