Federal Reserve Chairman Volcker's policy to fight inflation

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Volcker's policy, known as the Volcker Shock, involved raising interest rates to very high levels and reducing the money supply in the economy to combat inflation. This initially led to a severe recession from 1981-1983 but eventually succeeded in bringing down inflation to more manageable levels. The policy was not without critics, however, as some argued that it had negative effects on employment and economic growth. Overall, the policy was successful in achieving its main goal of reducing inflation.

Federal Reserve Chairman Volcker's Policy to Fight Inflation