Publications
Publications
- August 1985 (Revised February 2003)
- HBS Case Collection
Paul Volcker and the Federal Reserve: 1979-1982
Abstract
Describes three years of the Volcker monetary policy experiment. The Federal Reserve changed the focus by its operating procedure from an interest rate instrument to a reserve instrument and it reaffirmed its commitment to hitting its preannounced monetary growth target. At the same time Congress initiated widespread deregulation of financial institutions. The case encourages discussion on the best strategy and implementation of monetary policy, the effect of deregulation on its conduct, the causes of the recession and disinflation, and the competitive implications of the recent changes in monetary policy for competitive institutions.
Keywords
Citation
Rukstad, Michael G. "Paul Volcker and the Federal Reserve: 1979-1982." Harvard Business School Case 386-055, August 1985. (Revised February 2003.)