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<p>[QUOTE=&quot;Cloudsweeper99, post: 819178, member: 3011&quot;]What Volker did was redirect Fed policy from controlling the interest rate and letting the money supply expand as much as needed; to controlling the money supply and letting interest rates move whereever the market would take them.&nbsp; He didn&#039;t raise interest rates in the sense they are raised and lowered by the Fed today.&nbsp; He let the market raise them by stopping the supression by the Fed and letting the Fed Funds rate and discount rate track the market.&nbsp; But the point I was trying to make was that the rise in interest rates didn&#039;t cause the economic problems back then.&nbsp; The problems already existed and the rise in rates was the cure.[/QUOTE]</p><p><br /></p>

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