Let's pretend the economy is in a horrible recession, inflation is rising, and interest rates are sky-high. As the chair of the Fed, what monetary role are you going to take? Why?

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Callum Cuevas

History

3 October, 01:17

Let's pretend the economy is in a horrible recession, inflation is rising, and interest rates are sky-high. As the chair of the Fed, what monetary role are you going to take? Why?

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Camille Joyce · Answer 1

A policy created the 1980-82 recession by a. raising interest rates to lower spending, inflation and inflation expectations

the economic recession was that of 1981-82, where the unemployment rate was close to 11%. Unemployment during this period was widespread, but manufacturing, construction and automotive industries were specifically affected. Producers of goods accounted for only 30% of total employment at that time, but suffered 90% of job losses in 1982.