Forgotten Fortunes Editorial · Article Discussion
Read the original research: The Volcker Disinflation and the High Cost of Breaking Stagflation
Story overview: In October 1979, Federal Reserve Chairman Paul Volcker shifted monetary policy to restrict bank reserves, driving the federal funds rate to 20 percent and enduring the deep 1981–1982 recession to crush double-digit U.S. stagflation.
Discussion question: How did monetary choices affect the people and institutions involved?
Have a different interpretation? Share the evidence and explain why.
Editorial discussion starter, not an independent member endorsement.