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> What's a Fed Chairman to do?

In Australia, inflationary breakout led to the "Recession we had to have". Our Reserve Bank governor quite brutally broke the back of inflation in the late 80s to early 90s [1], culminating in an early 90s recession. With a quite conservative monetary policy we've done quite well since then.

(The mining boom has been a free kick though).

[1] http://www.smh.com.au/news/Opinion/How-the-recession-we-had-...



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