The Great Inflation

The Great Inflation refers to a period in the 1970s and early 1980s when many countries, particularly the United States, experienced soaring prices and decreased purchasing power. Factors included rising oil prices, supply chain disruptions, and expansive monetary policies. As prices climbed rapidly, people struggled to afford basic goods, leading to economic instability and uncertainty. Central banks responded by raising interest rates to combat inflation, eventually stabilizing the economy. This period serves as a significant lesson on the complexities of inflation and its impact on everyday life and economic policy.