After inflation surged in 1978, president carter responded by reducing the money supply and

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27-06-2022
Social Studies

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After inflation surged in 1978, president carter responded by reducing the money supply and

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Tundexi Tundexi · Answer 1 · 2022-06-28T11:44:07+02:00

President Carter responded by reducing the money supply and raising interest rates as reactive response to the inflation surged in 1978.

What caused the inflation surged in 1978?

The major causes of the inflation was the Fed policy which abandon the gold window, Keynesian economic policy and market psychology.

However, the President responded by reducing the money supply and raising interest rates as reactive response to the inflation surged in 1978.