By the time that I arrived at the Federal Reserve, in 1987, the task of the Federal Open Market Committee had become easier precisely because of the perseverance and success of our predecessors in the turbulent years following October 1979. Maintaining an environment of stability is simpler than restoring the public’s faith in the soundness of our currency.
The task is easier still as we remind ourselves of the stark difference between the long-term prospects of our economy now, in our current environment of stability, and then, a quarter-century ago, before the reforms of that October. In closing, I applaud President Poole and his colleagues for organizing this event to reflect upon that critical episode in our nation’s economic history.