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It was down to Paul Volcker to create the idea of central banker as superman; his success in breaking inflation in the early 1980s inspired other nations (starting with New Zealand) to go down the independent central banking route.
One chicken hatchery drowned 43,000 baby chicks on television because, its manager said, "it's cheaper to drown 'em than…to raise 'em .The author convincingly argues that Ronald Reagan shares credit with Paul Volcker, who became chairman of the Federal Reserve in 1979, for breaking inflation's back.
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Martin Beck, senior economic adviser to the EY ITEM Club, points out that we don't actually know how wage packets fared in April, but March's payroll data does suggest real wages are falling: "After six consecutive monthly falls, April broke inflation's downward trend with the CPI measure rising from 1.6%to1.8%8%.
The Fed was attacking the double dip after having caused the recession originally in an attempt to break inflation.
In his reading of history Volcker's interest rate hikes weren't to break inflation's back but to stick it to Europeans and the Japanese for building up trade surpluses with the US.
Ronald Reagan actually did study economics, and he was willing to pay a severe but, thankfully, short-term political price to break the inflation fever gripping the country in the early 1980s.
Why are cities in some of the world's poorest countries also the priciest?In Harare, record-breaking inflation, shortages of basic goods and an overvalued official exchange rate all keep prices translated into foreign currency dizzyingly high.
G.M. said the air bag on the driver's side might not fully inflate or break apart during inflation.
"This tones down some of the concerns that inflation is breaking out all over the place," said Douglas Porter, senior economist at BMO Nesbitt Burns in Toronto.
Most economists agree that Mr. Volcker helped pave the way for the expansion of the 1980's -- and today -- by breaking the double-digit inflation that in 1979 and 1980 threatened to stifle the United States economy.
It made a huge contribution to breaking the back of inflation during the 1980s and 90s because its prices drove down prices in the whole retail sector.
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CEO of Professional Science Editing for Scientists @ prosciediting.com