A look back at the runaway inflation of the 1970s

The legacy of Paul Volcker lives on

1970s inflation.
(Image credit: Illustrated | Getty Images)

The cost of borrowing money is probably about to go up again. The Federal Reserve is expected to raise interest rates at its July meeting in an effort to rein in stubbornly persistent inflation. "As price increases bedevil consumers at the gas pump and in the grocery aisle, the Fed believes that it needs to bring inflation under control swiftly in order to set the economy on a path toward healthy and sustainable growth," Jeanna Smialek and Jim Tankersley write for The New York Times.

The Fed's moves bring to mind another era of rampant inflation — the 1970s — and the man who eventually brought it under control: Paul Volcker. Under his leadership, the Fed's "tight money" policies triggered a massive recession that pushed the unemployment rate up to 11 percent in 1982. Inflation subsided, but the effort was painful for millions of workers and their families.

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Joel Mathis, The Week US

Joel Mathis is a freelance writer who has spent nine years as a syndicated columnist, co-writing the RedBlueAmerica column as the liberal half of a point-counterpoint duo. His work also regularly appears in National Geographic, The Kansas City Star and Heatmap News. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.