Below is a graphic from the WSJ which outlines inflation and unemployment under the last 3 Fed Chairmen – Paul Volcker, Alan Greenspan and Ben Bernanke. From the stagflation that was slain by Volker to the irrational exuberance of the Greenspan years and finally the financial contraction under Ben Bernanke. In the 1970’s Volcker tightened the money supply, the economy slowed and contracted – unemployment reached 10 percent. By August 1979 the prime interest rate got to 21.5% but by 1982 the inflation problem had been extinguished. However this was after 3 years of real hardship for the American people. Today we see that inflation isn’t the problem that it used to be and that stimulating growth and job creation is required.