In the late 1970s stagflation, Fed chairman Paul Volcker raised interest rates to 20 percent, which ended inflation but left all developing countries bankrupt, creating a debt crisis that required a decade of restructuring work.
factualpending
Speaker
Jeffrey SachsEvidence Quote
“in the last stagflation that we had in the late 1970s what happened was that the inflation in the united states reached around 10 percent per year and the fed under... paul volcker... he put interest rates up to 20 and by the time it was over all the developing countries were bankrupt... well it made my career because i spent the next decade helping countries get out of debt crisis”
Source
Jeffrey Sachs: "We're in a crisis and it will get worse in the coming months."— Prague Finance InstituteCreated: 8/10/2026, 9:58:27 PM
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