The whole process had entailed high economic and social costs; Stage two: In 1980s and 1990s, monetary policy managed to reduce inflation. Most central banks were gradually made independent from governments and acquired new credibility. This was the period of the triumph of central bankers.
US inflation came down from 13% in 1979-1980 to 2.2% in 1999.” Inflation has been a part of our lives for the last thirty years and it has become practically impossible to imagine living without it.