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Personal Finance and Investing

progree

(11,463 posts)

4. Fed Chair Paul Volcker raised interest rates way high in '79-82 and is credited with

Reply to Paper Roses (Original post)

Fri May 27, 2022, 12:08 PM

May 2022

bringing inflation way down. The problem at the time is that it also brought on a double-dip recession (which has the effect of reducing inflation or even causing deflation).

It's just about impossible to bring down inflation without severely slowing the economy, and that's the problem now.

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Dear friends, can you enlighten me? RE: increase in Prime Rate. [View all] Paper Roses May 2022 OP

I'm with you! elleng May 2022 #1

The logic is this: if rates increase, people can't as easily borrow money spooky3 May 2022 #2

Spooky has it right, and if I may expand a bit.... A HERETIC I AM May 2022 #3

Fed Chair Paul Volcker raised interest rates way high in '79-82 and is credited with progree May 2022 #4