Category Archives: Federal Reserve

“Opportunistic Disinflation”?? What the…?

Yglesias and TheMoneyIllusion link to sites explaining “opportunistic disinflation.” It’s a questionable doctrine adopted sometime in the 1980s by the Federal Reserve for fighting inflation “opportunistically.” It contrasts with what former Fed Chairman Paul Volker did in 1981—slamming 15% hyper-inflation with a Fed Funds rate of 19% and throwing the economy into deep recession with 10% unemployment.

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