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Opinion
William Silber

How Volcker Created a Gold Standard Without Gold

On Aug. 14, 1979, a week after he took office as chairman of the Federal Reserve, Paul Volcker led his first meeting of the Federal Open Market Committee.

“Economic policy,” he said, “has a kind of crisis of credibility.” As a result, “dramatic action” to combat inflation would not receive public support “without more of a crisis atmosphere.”