Review

Author names and contact information.

In his remarks at the conference, the Chairman of the Federal Reserve notes that the policy change initiated under the leadership of Chairman Paul Volcker rescued our nation’s economy from a dangerous path of ever-escalating inflation and instability.

An overview of this Review issue.

The Great Inflation from 1965 to 1984 is the climactic monetary event of the last part of the 20th century. The author analyzes why it started and why it continued for many years. Like others, he attributes the start of inflation to analytic errors, particularly the widespread acceptance of the simple Keynesian model with its implication that monetary and fiscal policy should be coordinated.

Commentary on "Origins of the Great Inflation" by Allan H. Meltzer.

This article offers a historical review of the monetary policy reform of October 6, 1979, and discusses the influences behind it and its significance. 

Commentary on "The Reform of October 1979: How It Happened and Why" by David E. Lindsey, Athanasios Orphanides, and Robert H. Rasche.

Monetary theory and policy have been revolutionized in the two decades since October 1979, when the Federal Reserve under the leadership of Paul Volcker moved to stabilize inflation and bring it down. On the side of practice, the decisive factor was the demonstration that monetary policy could acquire and maintain credibility for low inflation, and improve the stability of both inflation and output relative to potential.

Commentary on "The Monetary Policy Debate Since October 1979: Lessons for Theory and Practice" by Marvin Goodfriend.

The author discusses the international implications of the momentous event of October 1979 in the United States and the powerful lessons learned.

Ben S. Bernanke focuses on some lessons economists have drawn from the Volcker regime regarding the importance of credibility in central banking and how that credibility can be obtained. 

Roger W. Ferguson Jr. focuses on two issues: (i) what constitutes good monetary policy practice, with a review of the Federal Reserve’s record in satisfying its mandates in recent decades, and (ii) how good policy outcomes come about. Charles A.E. Goodhart discusses ...

The author provides a first-hand account of the decision made at the October 6, 1979, FOMC meeting and the subsequent developments.

The author provides personal recollections of the policy discussions in the years leading up to August 1979.

The author, a non-economist, discuses day-to-day experiences that flowed from the October 6, 1979, FOMC meeting.

How the economic and financial developments in the United States importantly influenced the Canadian economy and policymaking in Canada.

The author discusses how the world of monetary policymaking in the United States has been somehow different since 1979, what exactly is different, and in what respects those differences stem from the innovations introduced in 1979.

The author discusses possible reasons the United States suffered from the Great Inflation but Germany did not, reasons for this outcome for Germany, and lessons to be drawn from such experiences.

The author discusses how fundamental changes in U.S. monetary policy in October 1979 were welcomed by key officials in the Swiss National Bank.

The author discusses how the almost universal agreement developed that the U.S. budget should be in surplus and that the Federal Reserve that should be flexible in monetary policy in order to respond to changes in the economy.

The author reviews past monetarist strictures (Shadow Open Market Committee, 1974-1982) and whether current Federal Reserve practice provides a satisfactory response to them.

The author discusses how the FOMC decision on October 6, 1979, was very much part of an international policy coordination process that played out with our partners abroad, principally in Europe, as well as within the U.S. government, in the late 1970s.