The Recession of 1980

The recession of 1980 began in January 1980 and ended in July 1980. Three major developments affected the economic environment in 1978 and 1979, the years just prior to the recession:

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and other oil prices s $ECLINEINTHEVALUEOFTHEDOLLARWHICHRAISEDTHEPRICESOFIMPORTS

All three developments not only exacerbated the problem of inflation in the lead-up to the 1980 recession, but hampered attempts to stimulate economic growth and employment. The economy, plagued by inflation, had not yet come close to full employment since the end of the last recession in 1973-75 (Chapter 7).