The world economy It is still the case that the world economy is gaining strength, and forecasts for economic growth have generally been moving upwards. According to the main official international bodies (the IMF and the OECD), growth in the world economy will be about 4½ per cent in both 2004 and 2005.
Under the leadership of Volcker and, subsequently, Alan Greenspan, the Federal Open Market Committee took the actions necessary to bring the nation to price stability. In my view, the conquest of inflation has been a major source of the more-rapid economic growth and the greater stability of output and employment that the United States has enjoyed since the mid-1980s (Bernanke, 2004).