the economy of the mid-1970s seemed to trade in inflation with unemployment in a phenomenon called "stagflation", where wages/prices (inflation)and unemployment rose together

The sun of Reaganomics--which saw in the unfettered market the answer to the political, economic, and cultural stagflation of the 1970s--no longer warms the lower orders of the right.

With the onset of stagflation – of stagnation despite accelerating inflation

The “stagfl ation” of the 1970s had convinced governments and people that central banks ought to be independent of political control and target low inflation as their only objective.

The 'stagflation' of the 1970s

In the 1970s, however, both problems arose simultaneously – rising inflation and rising unemployment, or ‘stagflation’. The traditional Keynesian policy solutions were incapable of dealing with this conjunction, thus seemingly dictating a turn to alternative theories. It is important to be clear that, at this point, multiple interpretations of the economic problem were possible. The production of inflation through wage rigidities and trade union power was not the only possible framing of the problem, and neoliberalism was not the only possible solution.

The problems of 'stagflation' in the core regions of capitalism in the 1970s were partially addressed by the opening up of world trade to a globalised structure of competition

The problems of 'stagflation' in the core regions of capitalism in the 1970s were partially addressed by the opening up of world trade to a globalised structure of capitalism.

Neo-Keynesian success brought its own downfall in over-accumulation, over-production, and sundry other dislocations: OPEC price hikes in oil, stagflation, the beginnings of financialization, the transfer of production to low-wage areas, the end of social compromise and the appearance of the disastrous, neoliberal solution of market fundamentalism that would reach its peak in the 1980s and 90s.

The late 1960s and the early 1970s were not just the times of oil crisis and stagflation