>>> [EMAIL PROTECTED] 4/13/2005 12:38:14 PM >>>
the "Volcker shock" was the big increase in the exchange rate of the
dollar and world interest rates in the early 1980s that resulted from
Volcker's tight money/anti-inflation policies.

On 4/13/05, Charles Brown <[EMAIL PROTECTED]> wrote:
> CB: What is the Volcker shock ?
--
Jim Devine
<<<<<>>>>>

recall that volcker was appointed by prez carter in 79, response to
financial 'community' criticism of administration's anti-inflation
policies and financiers' desire for higher interest rates to prop up
dollar on international markets...

volcker assumed fed chair by announcing break with established
practices, board would no longer directly manipulate interest rates,
rather, it would seek to control growth of money supply...

by appointing volcker and embacing stringent cuts in 1980 budget
proposal, carter put into place economic policy sacrificing employment
to control inflation, prelude to reagan...    michael hoover

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