How did paul volcker contain the great inflation?

Paul Volcker, who served as the Chairman of the Federal Reserve from 1979 to 1987, is widely credited with successfully containing the “Great Inflation” of the 1970s and early 1980s. He did this by implementing a tight monetary policy, which included raising interest rates to historically high levels. This helped to curb inflation by making borrowing more expensive and slowing down economic growth. Additionally, Volcker also made changes to the way the Federal Reserve conducted monetary policy, such as targeting the money supply instead of interest rates. These actions ultimately led to a significant reduction in inflation and helped to restore stability to the U.S. economy.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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