Post Bretton-Woods Era
In July 1979, Paul Volcker was nominated, by President Carter, as Chairman of the Federal Reserve Board amid roaring inflation. He tightened the money supply, and by 1986 inflation had fallen sharply. In October 1979 the Federal Reserve announced a policy of "targeting" money aggregates and bank reserves in its struggle with double-digit inflation.
In January 1987, with retail inflation at only 1%, the Federal Reserve announced it was no longer going to use money-supply aggregates, such as M2, as guidelines for controlling inflation, even though this method had been in use from 1979, apparently with great success. Before 1980, interest rates were used as guidelines; inflation was severe. The Fed complained that the aggregates were confusing. Volcker was chairman until August 1987, whereupon Alan Greenspan assumed the mantle, seven months after monetary aggregate policy had changed.
Read more about this topic: History Of The Federal Reserve System
Famous quotes containing the words post and/or era:
“A demanding stranger arrived one morning in a small town and asked a boy on the sidewalk of the main street, “Boy, where’s the post office?”
“I don’t know.”
“Well, then, where might the drugstore be?”
“I don’t know.”
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“I don’t know.”
“Say, boy, you don’t know much, do you?”
“No, sir, I sure don’t. But I ain’t lost.””
—William Harmon (b. 1938)
“The great pagan world of which Egypt and Greece were the last living terms ... once had a vast and perhaps perfect science of its own, a science in terms of life. In our era this science crumbled into magic and charlatanry. But even wisdom crumbles.”
—D.H. (David Herbert)