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High inflation persisted in America in the 1970s. Why wouldn’t it happen again?
by jmarbach 5y ago
High inflation persisted in America in the 1970s. Why wouldn’t it happen again?
- anotherman554 5y agoBecause we have different Federal Reserve policy than we did in the 1970s, for one thing.
- thallium205 5y agoThe fed in the 70s slowed inflation by raising interest rates to 20%. The current fed will never do that.
- sfe22 5y agoCorrect. And there is a reason, at 10% interest rate, the federal government is bankrupt.
- vkou 5y agoIt could happen again, but equity returns wouldn't be sub-inflation for 10 years, because the real economy isn't shrinking by 4% a year.