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For Lessons on Fighting Inflation, Skip Over Volcker to 1946
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For Lessons on Fighting Inflation, Skip Over Volcker to 1946

Scott Minerd
Guggenheim Investments, 2022
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9

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Recommendation

With inflation today at levels not seen since the early 1980s, many are looking back to that period for guidance on how to tackle rising prices. But markets expert Scott Minerd says to go further back – to 1946, when US economic conditions more closely resembled today’s. He explains how the Federal Reserve then was able to reduce inflationary pressures and avoid a serious recession, though he notes the present-day Fed’s challenges in achieving price stability and full employment. Executives, financial professionals and investors will find this a fresh take on inflation and monetary policy.

Take-Aways

  • Policy experts may be misguidedly looking at the early 1980s for inflation-fighting strategies.
  • The Federal Reserve should consider the monetary policies adopted from 1946 to 1948.
  • After World War II, the Fed focused on reducing growth in the money supply, credit and the size of its balance sheet.

About the Author

Scott Minerd is the global chief investment officer at Guggenheim Investments and a founding managing partner of Guggenheim Partners.

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