OT RIP Rosalynn Carter

The spiral began long before. Nixon instituted price controls (failure) and Ford passed out Whip Inflation Now buttons (?), so yes, somebody had to do something serious to get it under control. That bout had become institutionalized within the system, something the current bout was not - but may have been on the verge. Once it gets kick started and wages go up and/or energy prices go up and/or …. It’s devilishly hard to get back in the bottle, if mixing of metaphors is allowed.

It was seriously out of control in the late 70’s, and Carter did what was necessary, and what probably sank his Presidency (although the Iran hostages could vie for the title) by appointing Volker and accepting that interest rates would have to be crushing, at least for a while.

In fairness, shorter after his inauguration Carter also appointed William Miller to replace Arthur Burns, and Miller was a total flop. His idea was “more investment” rather than “less inflation”. When that didn’t work - and contrary to the mantra of Fed independence, Jimmy pushed him out and appointed Volker, who promised to take on inflation. And did. And won. And Jimmy lost.

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