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Topic: Miscellaneous
Number of pages / Number of words: 3 / 675
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(Stone 1984). This spiraled into one of the strongest economic expansions since World War II had begun, with an average annual growth rate of 3.5%.

In the first two years, though, Federal Reserve chairman Paul Volcker fought inflation with a tight monetary policy and high interest rates. The Reagan administration urged Volcker to decrease monetary growth by a maximum of 50%, in order not to kill the tax cut program...


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The Reagan administration urged Volcker to decrease monetary growth by a maximum of 50%, in order not to kill the tax cut program. Volcker didn't take the advice and instead cut money growth by 75% in 1981. The recession became even worse, and unemployment rose further. But after inflation had been defeated, money growth resumed and the Reagan expansion took shape...


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