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US economy | How did Volcker kill inflation?

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“Alan Blinder: How does the Fed raising interest rates stop inflation from rising? Paul Volcker: By causing bankruptcies.”

Ah, yes! Finding simplicity amidst all the complexity is truly wonderful whenever it's possible. Paul Volcker was highly influential on a generation of central bankers. Never is a bad word spoken/written about him as an individual, or his policies, by anyone—neither in public or...

 

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US economy | How did Volcker kill inflation?

Alan Blinder asked Paul Volcker how monetary policy broke back of the 1970/80s US inflation surge. Is more QT appropriate if inflation doesn’t come