Iran-Israel war won’t trigger a 1970s-style economic crisis
Two macro events have cushioned the destructive fallout on the American and European economies
The October 1973 war in the Middle East was a tipping point that triggered a fourfold increase in global oil prices that amplified the inflation spiral in the Western world, which meant a severe recession and 50 percent fall in stock markets in 1974.
On a smaller scale, Iraq’s invasion of Kuwait and Desert Storm in 1990 also led to an oil shock that exacerbated an economic malaise in the US and Europe into the following…