Indeed, rather than leading to a tightening of monetary policy, increases in oil prices today are more likely to promote consideration of increased policy ease--a direct and important benefit of the improved control of inflation.
It was, of course, possible for businesses and governments to get foreign financing. But the accumulation of a large public sector debt and the rapid buildup of foreign indebtedness eventually resulted in appreciable premiums being built into our interest rates. High inflation through the 1970s and 1980s had a similar effect on interest rates.