…controlling the supply of money. Inflation could be tamed without increasing unemployment. In 1981, Fed Chair Paul Volcker gave it a try. Short-term interest rates soared to 20%, unemployment reached 10%, and Latin America spiraled…

…Volcker Recession and a 40% decline during the Great Depression. The combination of 9/11 and both the Iraq and Afghanistan wars killed about 10,000 Americans over a decade—the toll from…

…Fed, which has raised rates at the most aggressive pace since Volcker over 40 years ago. And part of that is that the Fed fell behind the curve. Without going…

…be lazy) low inflation used to mean 4% or lower. The ultra hawk Volcker’s target was 2% to 4% which meant 4%. Inflation was considered to have been defeated when…

…recession caused by the oil embargo (1974) and the Fed-engineered recession of 1981-82, caused by the sudden reversal and sharp increase in rates by Paul Volcker, these always started declining…

…below): Only the Volcker rate hikes of 1980 were steeper. In other words, in the last 2.5 years of Biden’s term, the Fed hiked rates to extremely constrictive *levels* compared…

…the case with the OPEC price hikes of the 1970s, and Paul Volcker’s single-handed ratcheting up of interest rates that caused the 1981 “double dip” recession.  The new Administration is…

…Volcker-induced recession, when they both turned down simultaneously. Note also that there have been 5 occasions when the goods producing sector turned negative YoY without a recession occurring.  Second, while…

…high unemployment, high inflation. And it really took Paul Volcker to come in and it cost us a very deep recession to anchor inflationary expectations, to get them down,’’ Yellen…

…rates to prevent the economy from overheating, even if doing so harms a president’s political prospects. I was in the Carter administration when Fed Chair Paul Volcker decided to “break…