Great Inflation

The Great Inflation was a period from the mid-1960s to the early 1980s when prices for goods and services in the U.S. rose rapidly, causing inflation to reach double-digit levels. This rise was driven by factors like increased government spending, oil price shocks, and expansive monetary policy. High inflation eroded purchasing power, made planning difficult for businesses and families, and prompted the Federal Reserve to raise interest rates significantly in the early 1980s to control it. The period is significant because it influenced monetary policy and highlighted the importance of balancing economic growth with price stability.