13. ‘Stagflation’ and the Trials of Détente, 1973–6

Abstract

This chapter examines the onset of the so-called stagflation and the problems that beset détente during the period 1973–1976. In the aftermath of Israel’s victories in the Six Day War, a situation of ‘no peace, no war’ prevailed in the Middle East. Attempts in 1970 and 1971 by the United Nations and the United States to make progress on a peace settlement proved futile. The chapter first considers the Middle East war of October 1973, which sparked a confrontation between the US and the Soviet Union, before discussing the impact of stagflation, especially on the Bretton Woods system. It then explores political problems in Europe and how European détente reached a high point in the Helsinki conference of 1975. It concludes with an analysis of détente and crises in less developed countries such as Chile, South Vietnam, Cambodia, and Angola.