If people of a certain age find themselves instinctively wondering why it’s a problem if inflation is now so low, then it’s a tribute to Paul Volcker who as US Federal Reserve chair between 1979 and 1987 courageously slew the dragon of runaway inflation in the US.
He took over with inflation running at 15 per cent a year, a cruel tax on workers and investment, and got it down to 3 per cent by 1984.
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The Australian Financial Review’s succinct take on the principles at stake in major domestic and global stories – and what policy makers should do about them.
