Lessons from the 1970s help U.S. and global economies absorb oil shocks

Economies are less vulnerable now than they were when a similar war in West Asia drove up fuel prices, triggering stagflation in the 1970s; decades of reforms have improved efficiency, cut reliance on West Asian oil, built reserves, and expanded alternative energy, but oil is still king, say experts

Published - April 13, 2026 11:11 am IST

The toxic mix of higher prices and slower growth that made economic life so miserable a half century ago. (For representation purpose only), File | Photo Credit: Reuters