Economy
Why the Early-1980s Disinflation Hurt Borrowers Before Prices Stabilized
The early-1980s fight against US inflation is remembered for eventual price stability. Its short-run costs were uneven. Households…
Category: Economy
The macro picture: inflation, growth, jobs, interest rates and central bank decisions.
Economy
Thailand in 1997: How a Currency Defense Became a Regional Banking Crisis
The Asian financial crisis began visibly when Thailand changed its exchange-rate arrangement on July 2, 1997, after pressure…
Economy
Regulatory Forbearance in the 1980s: How Delaying Thrift Closures Raised the Bill
Financial authorities sometimes give weak banks extra time to recover. During the US savings-and-loan crisis, that discretion often…
Economy
Petrodollar Recycling: How the 1970s Oil Surpluses Became a Debt Risk in the 1980s
The oil shocks of the 1970s changed who received global income. Oil exporters accumulated large surpluses while importing…
Economy
The Savings-and-Loan Crisis Began With an Interest-Rate Mismatch
Many American savings and loan associations entered the 1980s with a balance-sheet problem that did not require fraud…
Economy
Volcker’s October 1979 Monetary Shift Was More Than an Interest-Rate Increase
The Federal Reserve's October 1979 anti-inflation measures changed how officials implemented monetary policy. It is often described as…
Economy
Mexico’s 1982 Debt Crisis Exposed the Danger of Borrowing in a Foreign Currency
When Mexico announced in 1982 that it could not meet its external debt obligations as scheduled, the consequences…
Economy
Continental Illinois in 1984: A Bank Run Without Lines Outside Branches
Bank runs need not involve crowds at branch doors. Continental Illinois lost approximately 30 percent of its funding…
Economy
The Second Oil Shock of 1979: Why Energy Inflation Became Harder to Contain
The oil shock of 1978–79 arrived when the United States was still dealing with inflationary expectations from earlier…
Economy
The 1973 Oil Shock Was a Supply Shock and a Monetary-Policy Test
The 1973–74 oil crisis exposed how quickly an imported input can disrupt prices, production and international payments. Oil…