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Untitled Prezi

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by

Sameer Kushwaha

on 6 April 2014

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Transcript of Untitled Prezi


Florida, mid-1920's
Canada & United States
United States & Canada usher in a new era of large Budgets

Unlike Europe these budgets were investments in their economy like large scale infrastructure projects

This era of Keynesian Polices lasts until the Reagan Era
The Stock Market
The "Permanently high plateau"
Rebuilding Europe
1973 Oil Crisis
High global oil consumption
Yom Kippur War - land dispute with Israel
Oil embargo on USA due to support of Israel
Contributors
Depletion of East Texas reserves
Loss of swing production capability
Economic Crises of the Twentieth Century: A Comparative Approach
Contributors
Nixon Shock
-USD devaluation
-Oil prices given in USD
Contributors
More oil producers in Middle East
Diminished role of "Seven Sisters"
Europe Runs new budgets to account for war torn economy
Bretton Woods system establishes a new system to help economies in need
IMF & World Bank are created to help these economies


The speculative attitude of the time first showed itself in Florida Real Estate
"Beachside" property was selling for outrageous prices
Prices crashed and investors rushed to get out
The Fed vs. The Market
Are markets efficient?
Black Tuesday, October 29, 1929
Causes of the Great Depression
Speculation and confidence
Slow government reaction
Over leveraging
Excess supply on market
Macroeconomic Effects
Keynesianisation
of the economy in 1960s
Stimulating fiscal and monetary policy
Paired with
high inflation
due to the spike in oil prices
Regardless, Western Central Banks
cut interest rates
to encourage growth
Resulted in severe
stagflation
, and deepened the effects of the oil embargo
In addition, the price shock created large
current account deficits
in oil-importing countries

Effect of the oil crisis on USD
The Response on Wall Street
Dow Jones Industrial Average
Source: http://www.epips.com/djia/1970s-oil-crisis.html
Source: http://www.kathylien.com/site/oil/how-does-an-oil-crisis-impact-the-us-dollar-2
Oil Prices
Source: http://www.eia.gov/
Petroleum Chronology Graph
Source:http://www.eia.gov/pub/oil_gas/petroleum/analysis_publications/chronology/petrochrohotgraph.htm
Recommendations for the Future
Presentation Overview
Chris Chen
Sameer Kushwaha
Kelsey Mcdonald
Nick Stephen
Rossitsa Taneva

Similarities, Differences, and Limitations

Similarity
Housing prices drastically decreased
Differences
Excess supply of stocks vs. excess demand for oil
Initiated with stock market crisis vs. commodity shortage
Limitations
Different political environments
Different driving factors


Causes of the Great Depression
Economic and policy fallout
Legacy of the Great Depression
1973-75 Recession
The end of Bretton Woods

Devaluation of USD

Energy Crisis

Stock Market Crash in UK
Global Implications in the 1970's
Similarities, differences, limitations
Recommendations and concluding remarks
Under consumption, over investment, class divide
Analyze price growth for sustainability
Avoid "herd mentality"
"A fool will always be parted from his gold"
- John Kenneth Galbraith
Establish financial sector supervision and regulation at the global level
Respond adequately to supply-side versus demand-side shocks
Monitor debt and leverage
Q & A
Immediate Responses to the Great Depression
Drops in world output and standard of living
Unemployment: 25% in 1933
GNP: down 40% from pre-depression levels
Liquidity
Bank distress: reduced money supply

-Bank closures: frozen bank deposits
-Fear of bank failure: withdrawals
Full transcript