Volcher ended up clamping down hard on the money supplyStagflation began during the Nixon Administration. Before Carter, not during Carter as you claimed. Ask anyone who was an adult during Ford and they will tell you about his silly WIN buttons.
And like I said, Volker ENDED stagflation, not caused it as you claimed.
As every economist knows and will tell you, when you raise interest rates to fight inflation, unemployment usually rises.
During periods of high inflation, unemployment is usually low. This is why we don't want our politicians to have their hands on the money printing presses, because they will print us into hyperinflation to keep unemployment low.
Reagan was put under tremendous pressure to get Volcker to lower interest rates as we went into a recession from his efforts. But Reagan held firm, and inflation came down. Then the economy boomed bigly.
That is precisely what we are looking at now. With the Fed raising interest rates to lower inflation, there is a very good chance it will push us temporarily into a recession.
Everyone is hoping for a "soft landing" without a recession, and so far we have been lucky.
instead of feeding a " Inflation-ravaged economy ". And tinkered using
the Fed causing Interest rates to rise like no tomorrow.
Most grown adults around that time knew the dilemna
that Carter placed average Joe American.It was almost futile to
try and get a Home Mortgage as double-digit Interest rates
were infecting the economy.It wasn't until Reagan took over
that the Economy recovered.By the way Reagan with his
Tax plan ended up Doubling the Revenue to the Treasury.
From Carter's tepid $ 500 Billion to Reagans $ 1 Trillion.