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Pelaxed: Difference between revisions
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[[File:Cars waiting for gas in 1974.jpg|thumb|Cars waiting for gas in Albalitor in 1971|311x311px]] | [[File:Cars waiting for gas in 1974.jpg|thumb|Cars waiting for gas in Albalitor in 1971|311x311px]] | ||
==Supply Shock== | ==Supply Shock== | ||
See also: [[Western Imperium]] [[Continental Obligations]] | |||
After the Second Great War Pelaxia’s Continental Obligations had shifted towards Aciria, who became a strategic economic partner in regards to fossil fuels. Aciria's ability to claim imperium came with the defeat of Caphiria during the Second Great War, a defeat that the Levantia and Odoneru Treaty Association (LOTA) carefully crafted within the media as a primarily Acirian effort despite the plurality of resources coming from Levantia. Having defeated Caphiria allowed Aciria to credibly claim its mantle of imperium, a mantle recognized by the other LOTA-aligned nations on Sarpedon, Pelaxia, Cartadania, and Volonia. Aciria accepted its first Continental Obligation from Volonia on March 18, 1944, a date which is generally accepted as the beginning of the Western Imperium. | After the Second Great War Pelaxia’s Continental Obligations had shifted towards Aciria, who became a strategic economic partner in regards to fossil fuels. Aciria's ability to claim imperium came with the defeat of Caphiria during the Second Great War, a defeat that the Levantia and Odoneru Treaty Association (LOTA) carefully crafted within the media as a primarily Acirian effort despite the plurality of resources coming from Levantia. Having defeated Caphiria allowed Aciria to credibly claim its mantle of imperium, a mantle recognized by the other LOTA-aligned nations on Sarpedon, Pelaxia, Cartadania, and Volonia. Aciria accepted its first Continental Obligation from Volonia on March 18, 1944, a date which is generally accepted as the beginning of the Western Imperium. | ||
Its status continued until 1970, when both Pelaxia and Volonia switched their recognition back to Caphiria and established the Continental Diplomatic Arrangement Organization, departing LOTA. That resulted in Aciria cutting production of oil and placing an embargo on oil exports to Pelaxia. | Its status continued until 1970, when both Pelaxia and Volonia switched their recognition back to Caphiria and established the Continental Diplomatic Arrangement Organization, departing LOTA. That resulted in Aciria cutting production of oil and placing an embargo on oil exports to Pelaxia. | ||
==Asset Bubble and Crash of 1996== | ==Asset Bubble and Crash of 1996== | ||
[[File:84f5a6f9-1483-41e4-b9c2-41b8f7245fc1 16-9-aspect-ratio default 0.jpg|thumb|El Periódico reporting on the aftermath of the stock market crash|382x382px]] | [[File:84f5a6f9-1483-41e4-b9c2-41b8f7245fc1 16-9-aspect-ratio default 0.jpg|thumb|El Periódico reporting on the aftermath of the stock market crash|382x382px]] | ||
Pelaxia’s economic growth in the second half of the 20th century ended abruptly at the end of the 1990s. In the late 1990s, abnormalities within the Pelaxian economic system had fueled a speculative asset price bubble of a massive scale. The bubble was caused by the excessive loan growth quotas dictated on the banks by Pelaxia's central bank, the Bank of Pelaxia, through a policy mechanism known as the "window guidance". | Pelaxia’s economic growth in the second half of the 20th century ended abruptly at the end of the 1990s. In the late 1990s, abnormalities within the Pelaxian economic system had fueled a speculative asset price bubble of a massive scale. The bubble was caused by the excessive loan growth quotas dictated on the banks by Pelaxia's central bank, the Bank of Pelaxia, through a policy mechanism known as the "window guidance". | ||