Bad Medicine Begets Bad Economy.

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  • Additional Information
    • Subject Terms:
      UNITED States
    • Subject Terms:
      BERNANKE, Ben, 1953-; VOLCKER, Paul A., 1927-2019
    • Abstract:
      The article discusses the causes and cures for three periods of economic distress in U.S. history. In the author's view tax cuts and the removal of price controls helped stimulate the U.S. economy after World War II. A serious bout of deflation during the 1970s was tamed by Federal Reserve Chairman Paul Volcker's willingness to endure a recession. The author argues that in 2010 a major source of economic malaise is a weak-dollar policy being pursued by Federal Reserve Chairman Ben Bernanke. He believes a devalued dollar discourages business investment and prompts people to speculate in currencies and commodities.