Annual Report of the Federal Reserve Bank of Cleveland
Fragments of Transition
This past year brought frustration and uncertainty about the economy to all Americans as we grappled with the second recession in as many years. Yet, several years from now, 1981 may well be recalled as a great turning point-a time when monetary policy convincingly slowed the rates of money growth and inflation. Many problems that lie ahead-some of which were dimly perceived just one year ago-are now coming into sharper focus. To understand the challenges that these problems pose, we should look closely at the major economic events of 1981.