Paul A. Volcker Quotes

The worst failures of the Federal Reserve have come from waiting too long tp tighten monetary policy during expansions, not from loosening it too much during recessions.

My interest in economics has always been in the whole corpus of economic theory, the interrelationships between the various fields of theory and their relevance for the formulation of economic policy.

There is no left or right in economic management today.

I reject the advice of those who think the only way to fight inflation is to throw millions of people out of work .... I guarantee you that I will not fight inflation with your jobs.

I'm going to focus on the economy like a laser.

The Fed [Federal Reserve System], whether it likes it or not, is required to provide adequate reserves to the banking system in order for the government to finance its needs, even when that is inflationary.

The Federal Reserve's job is to take away the punch bowl just when the party gets going.

There's no such thing as a painless cure for inflation.

Politicians always seek a pain-free solution to economic problems, and the economists keep reminding us that there is no such thing.

Experience shows that high and unstable inflation can harm growth. A noninflationary macroeconomic policy is, therefore, a prerequisite for rapid development. Control of government borrowing is the crucial element in such a policy. When public borrowing is excessive, governments are soon obliged to finance it by printing money, and rising inflation then follows.

Attempting to control inflation or protect the dollar by throwing legions of people out of work and shutting down shifts in our factories and mines is a hopeless policy.

Everybody’s kicking the can down the road of too much public and private debt. The can is becoming heavier and heavier…

The Federal Reserve is playing a mind game—but with enormous real-world consequences.

I don't think most of Congress understands how economics works.

Monetary policy is one of the most difficult topics in economics. But also, I believe, a topic of absolutely crucial importance for our prosperity.

Supply creates its own demand

Since I’ve become a central banker, I’ve learned to mumble with great incoherence. If I seem unduly clear to you, you must have misunderstood what I said.

Every Congressman, every Senator knows precisely what causes inflation...but can't, support the drastic reforms to stop it because it could cost him his job

Monetary stability is a cornerstone of the social contract.

Nothing so weakens governments as persistent inflation.

Economic downturns in the United States generally occur when the Federal Reserve raises interest rates to keep inflation in check When the Fed's Open Market Committee believes that it has brought inflation under control, it can start to lower rates and reverse the downturn. But the recession that began in 2007 [The Great Recession] was unusual: since the Fed did not casuse that downturn by tightening monetary policy, it could not reverse it by lowering short term interest rates. The downturn was the result of market mispricing assets, including financial assets such as equities and mortgage-backed securities and real assets such as housing.

I will be the first to say that it is always difficult to get monetary policy just right. But the Fed's analytical prowess is top-notch, and our forecasting record is second to none.

I think economics - and this is what I've tried to impart - has a tremendous amount of human interest in it.

The shape and composition of the government is important. We haven't reached a point where politics and economics have been totally divorced from each other.

Weirdly enough, I'm a macroeconomics enthusiast.