From Wiki.
Can the Fed really stop inflation coming from an oil shock? Notice the inflation adjusted price, much higher than the nominal, almost a sure bet the inflation was driven by oil prices. What could the Fed do? Pull the trigger as if this were purely monetary inflation.
OK, so add this problem, Republican debt:
The Federal Reserve board led by Volcker raised the federal funds rate, which had averaged 11.2% in 1979, to a peak of 20% in June 1981, and finally oil prices subsided.
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