Part 2 of Double-Dip Recession (1 juill. 1981 – 1 nov 1982)
Description:
Duration: 16 monthsGDP decline: 2.9%
Peak unemployment rate: 10.8%
Reasons and causes:
By the fourth quarter of 1980 inflation was up to 11.1%, prompting the Federal Reserve to raise the fed funds rate to 19% by July 1981.33 As the downturn worsened and joblessness climbed, Volcker resisted repeated demands in Congress to change course.34 By October 1982 inflation had declined to 5%, while unemployment would remain above 10% until mid-1983.3517 Most economists today accept Volcker's arguments at the time that failure to control inflation and restore the Fed's credibility would have led to continued economic underperformance.
Ajouté au bande de temps:
Date:
1 juill. 1981
1 nov 1982
~ 1 years and 4 months