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""Inflation Control Failures"" examines the United States' struggle to manage soaring inflation during the 1970s, focusing on the use and ultimate failure of wage-price controls. The book argues that these controls, intended to curb inflation, neglected the core monetary and fiscal drivers, leading to market distortions and inefficiencies. It highlights how political considerations often overshadowed sound economic principles, contributing to policy missteps. This deep dive into economic history offers valuable lessons for today's policymakers facing similar inflationary pressures.
The book begins by setting the stage with the factors leading to the 1970s crisis, such as expansionary monetary policies and supply shocks. It then analyzes the Nixon administration's implementation of wage-price controls, tracing their evolution and eventual dismantling. By drawing on economic data, policy documents, and accounts from those involved, ""Inflation Control Failures"" provides a comprehensive assessment of the impact of these controls on inflation, employment, and economic growth, offering a nuanced perspective on why these interventions proved ineffective.
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