Write 1000 words in answer to TWO of the Activities for that Topic- ie write approximately 500 words in answer to each of your two chosen Activities.

The Oil Crisis write 500 words

and Debt Crises write 500 words.

The Oil Crisis, Stagflation, Debt Crises, and the End of the Bretton Woods Monetary System

Discuss these questions:

1.Why did the oil crisis of 1973 occur?
2.What impact did the oil crisis have on the developed countries?
3.What caused the debt crisis in developing countries during this period?
4.Why did the international monetary system set up at Bretton Woods in 1944 finally collapse in the early 1970s?

SAMPLE ANSWERS

Question One

Why did the oil crisis of 1973 occur?

The vitality emergency of 1970s started with the  war of Yom Kippur amongst Israel  other  Middle East states , which ejected on October 1973. Individuals from the Organization of Oil Exporting Countries (OPEC) executed a ban on oil on October 1973, the application of the ban firstly  being to the United States yet rapidly extending  to Europe as a result of  apparent backing which the nations were providing for Israel (International Energy Statistics and Analysis, 2008). The ban was joined by huge increments in the cost of oil, which rose from US$3 per oil  barrel before the start of  the war to as high as  US$11 per oil barrel………..

Question Two

What impact did the oil crisis have on the developed countries?

In the three furious months after the ban was declared, the cost of oil shot from $3 per barrel to $12 (Alpanda & Peralta-Alva, 2010). Following quite a while of bottomless supply and developing utilization, Americans now confronted value treks and fuel deficiencies, making lines structure at gas stations around the nation. Neighborhood, state and national pioneers called for measures to save vitality, requesting that service stations………..

Question Three

What caused the debt crisis in developing countries during this period?

In the 1970s, during the oil crisis, banks were excited to loan to developing nations (Bordo & Meissner, 2015). The hypothesis was that governments cannot default. Banks have been condemned for flippant loaning and neglecting to ensure credits were reasonable. Similarly, loaning to governments was……….

Question Four

Why did the international monetary system set up at Bretton Woods in 1944 finally collapse in the early 1970s?

The outline of the Bretton Woods System was that no one but countries could authorize gold convertibility on the grapple money – the United States (Hahn, 2012). Gold convertibility implementation was not required, but rather, permitted. Countries could do without changing over dollars to gold, and rather hold dollars. Instead of full convertibility…………..

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