The first one is that the macro-economic success at that time was due to the use of activist and expansionary fiscal and monetary policies. The second is that the world economy was moving along very smoothly in the post-war period, with everything under control, until hit by the external shock of the OPEC-induced oil price rise in late 1973 (and again in 1979).
I would like to analyse these two propositions with particular reference to Australia, but in doing so it will be necessary to bring in a lot of international economic and political events, particularly those occurring in the United States. 2.