In “The Last Monetary Hero,” James Grant’s review of Paul Volcker’s “Keeping At It” (Bookshelf, Nov. 26), he highlights America’s broken money system. The Federal Reserve’s unlimited ability to print money in order to stimulate the jobs market led (in the 1970s) to dollar deflation and its corollary, price inflation. Mr. Volcker, recognizing that too-low rates were the root of the problem, effectively de-levered the market by allowing rates to rise. Unbridled rates, rising to previously unimaginable heights, were needed to break the inflationary cycle, though at a significant cost to the labor market.

Source: Wall Street Journal December 14, 2018 23:37 UTC