Figure 1220: Change in Inflation $\Delta$ $\pi$ ): 1977-1982
-Consider Figure 12

Essay

Figure 12.20: Change in Inflation ( $\Delta$ $\pi$ ): 1977-1982
-Consider Figure 12.20, which shows the change in inflation from 1977-1982. If you are the Fed chairman during this period, G. William Miller (1978-1979) and Paul Volcker (1979-1987), what is your primary concern during the periods of, roughly, 1978-1980 and 1982? What would you do to remedy this situation? What curve are you likely to consider when you make your policy decision?