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Period: to
1970
Rapidly rising oil prices create an inflationary spiral, which raises interest rates. Recession follows. The expensive Vietnam War ends. Automation takes hold. -
1971
President Nixon imposes wage and price controls. He presents Congress with legislation to repeal tax on cars, to provide tax credits for business investments, and to reduce individual income tax. -
1972
Inflation increases when President Richard Nixon lifts wage-and-price controls. -
1973
The 1973 Middle East War occurs. Organization of Petroleum Exporting Countries (OPEC) increases oil prices, decreases oil production, and imposes an oil embargo on the U.S. that generates even higher inflation and a trade deficit. -
1974
The oil embargo triggers the 1974-1975 world recession, which exacerbates the less-developed countries' debt burden. -
1975
Eight of the largest U.S. banks are owed $37 billion. The largest portion of Latin American debt originates from U.S. banks, accounting for 217 percent of total capital and reserves. -
1976
First National City Bank changes its name to Citibank. Several banks license VISA. -
1977
Inflation accelerates when President Jimmy Carter places emphasis on restoring economic growth instead of controlling inflation. -
1978
Iranian Revolution occurs, the Shah is deposed, Middle East oil production is cut, and international oil prices soar. -
1979
Inflation is over 13 percent, and Volcker is committed to reducing that figure. Volcker concentrates on controlling the money supply instead of keeping interest rates low. Unemployment reaches 11 percent, and the prime rate reaches 21.5 percent during Volcker's tenure.