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The Shadow Rate and the Great Financial Crisis
The markets were very convinced that inflation was going to run forever and there was nothing you could do to stop it. When Volcker raised rates he said in motion the next 40 years of disinflation. We never used fiscal policy to try to fix the economy during this entire period including the great financial crisis. A lot of people still believe this is a sugar high and that this is this is never going to happen again.