Three Questions: Prof. Andrew Metrick on Paul Volcker’s Legacy

That which was Paul Volcker’s key insight when he became Fed seat in 1979 and increased rates of interest?

The “solution” of high interest rates was easy to see. The difficult component was to do it. Volcker had been prepared to be unpopular—with the general public, aided by the industry, and with the president that appointed him.

Their strategy caused short-term pain but ultimately added to success. What does it state about him as person that he was capable notice it through?

It revealed tremendous courage. Searching straight back from 40 years later, it really is challenging value exactly how much force he was under to change training course. Hardly any general public servants could have stood to this.

You’ve got to learn him in the last stage of their job, as he aided shape the reaction to the worldwide economic crisis. What was the impact of his presence and his tips?

Inside federal government, I happened to be a staffer assigned to the President’s Economic healing Advisory Board, in which Volcker ended up being the chair. He was currently over 80 yrs . old, but their energy in advocating for their some ideas had been extraordinary. Ultimately, he nearly single-handedly convinced the management and Congress regarding the requirement of exactly what became the “Volcker Rule” in significant legislation passed this year.