Paul Volcker is leaving Obama’s economic advisory board. The decision seemed to have been a long time coming: Volcker saw the board as a public relations tool instead of an instrumental step toward financial recovery. He is well known for calming inflation in the 1970-80s as Fed Chairman, and his views from his experience in the 80s were reflected in his goals in today’s economic crisis.
The former Fed Chairman increased interest rates to over 20% in 1981, causing protest over the unpopular monetary decision. Our new head of the Subcommittee on monetary policy has had a few words praising the former Fed Chair:
“Being in Congress in the late 1970s and early 1980s and serving on the House Banking Committee, I met and got to question several Federal Reserve chairmen: Arthur Burns, G. William Miller and Paul Volcker. Of the three, I had the most interaction with Volcker. He was more personable and smarter than the others, including the more recent board chairmen Alan Greenspan and Ben Bernanke.” – Congressman Ron Paul