Macroeconomics 7: The Fed & Volcker's Socks
Planet Money Summer School
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What's the Problem With Inflation?
In 1981, more than two years after that emergency meeting, people started to believe Volker. Inflation dropped to 9% then 7%, 6%, 4%. The Fed finally eased up. They let the amount of money in the economy grow a bit and the jobs came back. But it had been a bad recession.
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