Median household income, adjusted for inflation, was higher in 1980 than it had been in 1976. But gas lines and double-digit inflation made people feel that things were falling apart.
Both previous shocks resulted in double-digit inflation and global recession.
这两次石油危机都导致两位数的通胀和全球衰退。
Just ask Paul Volcker, who eventually had to push the federal funds rate up to 19% to break the back of double-digit inflation and inflationary expectations.
The IMF expects the economy to grow by over 9% this year, although double-digit inflation means that the rupee is losing purchasing power at an unusually rapid pace.