Paul Volcker, Fed Chairman raised interest rate suddenly & dramatically. Prime Interest rate eclipsed 21.5% June, 1982. Indeed, it certainly slowed inflation too. Who gives such privilege to one man?
His actions slammed on the breaks. To give him credit is ironic. During his terms a Fed Chairman, he granted more credit that any person alive. He granted it out-of-thin-air. He set the Fed banks for windfall high interest rate profits.
Please read about it. Here is a short essay: http://www.fsmitha.com/h2/ch37-reagan2.htm The rate of economic growth returning in 1983 may well have been reported as negative (President Reagan overhauled the CPI to lower the reported rate of inflation).
So, it high interest rates are a good solution to a flagging economy, perhaps Mr Volcker would have another run at 21.5% Prime Rate.
Please follow up with the book, "End the Fed" by Ron Paul.
Don't get me wrong. Volcker's actions were extremely contenious. Alot of good & bad came from it... To wit: depending on if you were a banker or not. There is plenty written on both sides of these arguments. Interest rates: high vs low. I side w/ Ron Paul. End the Fed.
Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul ☑
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