"Before Volcker's slaying of inflation was the recognition that inflation was a political problem. The people and by extension the politics demanded inflation be tamed. The Federal Reserve responded. Carter's nationally televised address in October 1978 captured the moment. The political fallout from inflation was readily apparent in that address."

"Good evening. I want to have a frank talk with you tonight about our most serious domestic problem," said President Carter in an October 1978 televised address. "That problem is inflation. Inflation is obviously a serious problem. What is the solution? One of these answers is to impose a complicated scheme of Federal government wage and price controls on our entire free economic system. The other is a deliberate recession which would throw millions of people out of work. Both of these extreme proposals would not work, and they must be rejected."