Paul Volcker

Paul A. Volcker (born 1927), economist, is best-known as the former Chairman of the Federal Reserve Board of Governors. He was appointed by President Jimmy Carter, and served from August 1979 to August 1987. He also served as under-secretary of the Treasury from 1969-74 and president of the New York Federal Reserve Bank from 1975-79.

Volcker's Fed was responsible for ending the United States' inflation crisis of the early 1980s. This was achieved by constricting the money supply through a sharp increase in interest rates. In addition to disinflation, this policy caused a severe recession and the worst unemployment since World War II. By 1985 the economy was nearly back to full employment, and inflation was considerably lower: from 9 percent in 1980 to 3.2 percent in 1983.