2min chapter

Planet Money cover image

Two Indicators: Inside the Fed, then and now

Planet Money

CHAPTER

Inflation in the 1970s

In 1971, Nixon did put wage and price controls into place. This was a controversial move because these types of controls usually only bring down inflation in a temporary way. Chris says he thinks Burns was dealing with a couple of big economic forces that shaped his approach to interest rates. In the 1970s, inflation was a global issue. There were big shocks coming from the supply side, like the Arab oil embargo of 1973.

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