In this theory, it is not only inflationary expectations that can cause stagflation. During the 1970s, there was an economic crisis caused by stagflation. So, inflation jumps and output drops, producing stagflation. Inflation in stagflation, however, does not affect all firms equally. During his term the economy suffered due to stagflation and industrial unrest. This post-war domination by Neo-Keynesian economics was broken during the stagflation of the 1970s. The post-war economic boom ended with "stagflation" in the early 1970s. Combined with economic stagflation, radicalism lost favor. The U.S. economy experienced structural changes following the stagflation. The 1970s and early 1980s saw the onset of stagflation. Attempting to end stagflation Sharif launched a program of privatisation and economic liberalisation. Supply-side economics emerged as a response to US stagflation in the 1970s. Economists offer two principal explanations for why stagflation occurs. Supply-side economics developed in response to the stagflation of the 1970s. The stagflation of the 1970s appeared to bear out their prediction.