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Henry Blodget|May. 4, 2009
Economist Allan Meltzer explains how hyper-inflation developed in the 1970s. It wasn't because people were stupid then. It wasn't because they didn't care about inflation. It wasn't because they didn't think inflation was a problem.
It was because they thought pumping money into the economy would strengthen the recovery, add jobs, etc. and because the Fed wasn't independent enough to stand up to political pressure.