Choose a challenge and test how serious it was.
Which challenge was the most serious for the global economy?
The oil crises
- Prices nearly quadrupled in 1973-1974 and more than doubled in 1979-1980.
- Stagflation across industrial economies.
Widest reach; ended the Golden Age and set off other challenges.
Industrial economies had adapted by the mid-1980s.
Protectionism
- Multi-Fibre Arrangement, 1974.
- Japanese car export restraint, 1981.
Lasted two decades and hurt developing exporters.
World trade kept growing.
The debt crises
- Mexico cannot pay, August 1982.
- A lost decade in Latin America.
The deepest damage to the regions hit.
Industrial economies were less affected.