Scanning the capital horizon Available to Purchase

The capital shortage is an issue that surfaced in 1974, during a period of shortages and bottlenecks for basic commodities and production materials in key industries; liquidity squeeze and balance sheet instability for households, corporations and banks; rapid inflation; and escalating interest rates. This combination of circumstances was unique to the postwar period, although other business cycle episodes since World War II have been characterized by some of the same elements.