‘Maximum’ or ‘full’ employment, after all, had become the nation’s major economic goal – not stability of the price level. That inflation ultimately brings on recession and otherwise nullifies many of the benefits sought through social legislation was largely ignored.
2  During Burns’ tenure at the Fed, inflation averaged nearly 7% in the US, well above the 2% levels of the preceding two decades. 3 Indeed, the decade ended in tears, with high inflation giving way to falling investment and growth, and eventually a sharp and persistent increase in unemployment, which took years to resolve.