the end of the oil shocks was the primary cause of that.
Supplies weren't restricted, the price was being manipulated; the issue in 1979 was that there was a 4% reduction in supply due to the Iranian crisis and panic after remembering the recent rationing crisis in 1973. Prices shot up far faster than they had in 1999-2008, nearly a ten year period and that peak quickly went away, while the spike in 1979 came far faster and lasted into the mid-1980s. In fact the inflation problem tracks highly with oil prices in that period.I dont think it was, nor is quite that simple. After all, oil has gone from $10 a barrel in 1999 to 150 in 2008 with no inflation to speak of.
Supplies weren't restricted, the price was being manipulated; the issue in 1979 was that there was a 4% reduction in supply due to the Iranian crisis and panic after remembering the recent rationing crisis in 1973. Prices shot up far faster than they had in 1999-2008, nearly a ten year period and that peak quickly went away, while the spike in 1979 came far faster and lasted into the mid-1980s. In fact the inflation problem tracks highly with oil prices in that period.
https://en.wikipedia.org/wiki/1979_energy_crisis
Another POD is Gerald Ford winning reelection. There's a good chance that he appoints Alan Greenspan as Fed Chair instead of Volcker. He'd probably take an equally hawkish monetary policy while supporting deregulation.