1980s economic crisis

The 1980s economic crisis, often referred to as the "Volcker recession," was marked by high inflation and unemployment in many countries, notably the United States. To combat soaring inflation, Federal Reserve Chairman Paul Volcker raised interest rates sharply, which slowed economic growth. This led to widespread job losses and increased interest in borrowing. Global factors, including oil price shocks and debt crises in developing nations, exacerbated the situation. By the mid-1980s, economies began to recover as inflation decreased, but the crisis highlighted vulnerabilities in financial systems and the need for better economic policies.