The terms-oftrade shock we are experiencing, which has already translated into an increase in excess capacity and downward pressure on inflation, has the potential to act as such a trigger, if left unaddressed.
(Washington: Government Printing Office), p. 5. BIS Review 57/2004  1  Little leeway for policy was left before the Federal Reserve took decisive action on October 6, 1979. In retrospect, the policy put in place on that day was the obvious and necessary solution to the nation’s troubles.