p and the economy down. The Federal Reserve acted to control inflation, and those actions raised interest rates and unemployment. From 1976 through 1978, President Carter and the Congress implemented fiscal policies once again designed to stimulate a depressed economy. In 1979, however, the nation experienced a second energy crisis, inflation zoomed, and the economy, for the most part, crashed.
In the early 1980s, loosely coordinated monetary policy implementation by the Federal Reserve and fiscal policy implementation by the Reagan Administration was designed to stop
6John B. Shoven, "Real Interest Rates and the Savings and Loan Crisis," National Bureau of Economic Research Working Paper No. 3754 (Washington: National Bureau of Economic Research, June 1991), 12.
price inflation in its tracks. The policies worked. The policies also, however, stopped the economy in its tracks. When the Republicans lost the congressional elections in 1982, and with Presid
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