US Monetary Policy Shift Leads to Weaker Economic Stability Pre-Volcker.
The study looked at the impact of different monetary policies on the US economy before and after 1982. They used a model to simulate how the economy responded to these policies. The results showed that active policy after 1982 led to stable economic conditions, while passive policy before Volcker caused uncertainty in the economy. Additionally, they found that inflation and output changes were less drastic after 1982 compared to before.