Earlier quoted context omitted.
President Carter solved inflation, and it cost him the election, and President Reagan got the credit. Carter appointed Paul Volcker, an inflation hawk, as Fed chair in 1979. Volcker solved inflation by raising interest rates, causing two recessions, one of which was during Carter's re-election year. Reagan kept Volcker on for a short time before firing him, but Volcker got the job done, so it was President Carter tha…
This is not accurate. When Carter appointed Volcker, inflation was a dire problem, having reached upwards of 20%. He hiked the fed fund rates in full point increments, provoking howls of protest because it sent the economy into a full recession. But it took over a decade for inflation to come down to near zero range. (That's where the term stagflation comes from. There was zero GDP but high inflation.) Volcker could…
This statement is self-contradictory. President Carter solved inflation by appointing Volcker. Period. He sacrificed the his presidency to do it, thus he took it seriously. No president gets anything done in during their first term, but President Carter's decisions not only solved inflation, it turned the economy around.