During the early 1980s, Paul Volcker argued that the Fed could not

Question

Quizplus · Accepted Answer

Paul Volcker believed that the high inflation rates during the 1970s were caused by excessive money supply growth, which was fueled by the federal budget deficit. Therefore, he argued that the Fed could not decrease money supply growth until the federal budget deficit was reduced through government spending cuts or tax increases. This would help to control inflation and stabilize the economy.

During the Early 1980s, Paul Volcker Argued That the Fed