The Volcker Shock was a period of historically high interest rates precipitated by Federal Reserve Chairperson Paul Volcker's decision to raise the central bank's key interest rate, the Fed funds effective rate, during the first three years of his term. Volcker was appointed chairperson of the Fed in August 1979 by President Jimmy Carter, as replacement for William Miller, who Carter had made his treasury secretary. Volcker was one of the most hawkish (supportive of tighter monetary policy to stem inflation) members of the Federal Reserve's committee, and quickly set about changing the course of monetary policy in the U.S. in order to quell inflation. The Volcker Shock is remembered for bringing an end to over a decade of high inflation in the United States, prompting a deep recession and high unemployment, and for spurring on debt defaults among developing countries in Latin America who had borrowed in U.S. dollars.

Monetary tightening and the recessions of the early '80s

Beginning in October 1979, Volcker's Fed tightened monetary policy by raising interest rates. This decision had the effect of depressing demand and slowing down the U.S. economy, as credit became more expensive for households and businesses. The Fed funds rate, the key overnight rate at which banks lend their excess reserves to each other, rose as high as 17.6 percent in early 1980. The rate was allowed to fall back below 10 percent following this first peak, however, due to worries that inflation was not falling fast enough, a second cycle of monetary tightening was embarked upon starting in August of 1980. The rate would reach its all-time peak in June of 1981, at 19.1 percent. The second recession sparked by these hikes was far deeper than the 1980 recession, with unemployment peaking at 10.8 percent in December 1980, the highest level since The Great Depression. This recession would drive inflation to a low point during Volcker's terms of 2.5 percent in August 1983.

The legacy of the Volcker Shock

By the end of Volcker's terms as Fed Chair, inflation was at a manageable rate of around four percent, while unemployment had fallen under six percent, as the economy grew and business confidence returned. While supporters of Volcker's actions point to these numbers as proof of the efficacy of his actions, critics have claimed that there were less harmful ways that inflation could have been brought under control. The recessions of the early 1980s are cited as accelerating deindustrialization in the U.S., as manufacturing jobs lost in 'rust belt' states such as Michigan, Ohio, and Pennsylvania never returned during the years of recovery. The Volcker Shock was also a driving factor behind the Latin American debt crises of the 1980s, as governments in the region defaulted on debts which they had incurred in U.S. dollars. Debates about the validity of using interest rate hikes to get inflation under control have recently re-emerged due to the inflationary pressures facing the U.S. following the Coronavirus pandemic and the Federal Reserve's subsequent decision to embark on a course of monetary tightening.

Graph and download economic data for Unweighted Median Hourly Wage Growth (1983): Overall (FRBATLWGTUMHWG83O) from Jan 1983 to Aug 2025 about growth, wages, median, and USA.

The Survey of Consumer Finances (SCF) is normally a triennial cross-sectional survey of U.S. families. The survey data include information on families' balance sheets, pensions, income, and demographic characteristics.

The gross domestic product (GDP) by fiscal year in Bolivia stood at 46.97 billion U.S. dollars in 2024. Between 1983 and 2024, the GDP rose by 46.97 billion U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. From 2024 to 2026, the GDP will increase by 18.88 billion U.S. dollars.

United States CPI U: Transport: Private: NU: NV: NT: New Trucks data was reported at 156.178 1983=100 in Jun 2018. This records an increase from the previous number of 156.009 1983=100 for May 2018. United States CPI U: Transport: Private: NU: NV: NT: New Trucks data is updated monthly, averaging 144.900 1983=100 from Dec 1983 (Median) to Jun 2018, with 415 observations. The data reached an all-time high of 158.010 1983=100 in Jan 2017 and a record low of 100.000 1983=100 in Dec 1983. United States CPI U: Transport: Private: NU: NV: NT: New Trucks data remains active status in CEIC and is reported by Bureau of Labor Statistics. The data is categorized under Global Database’s USA – Table US.I002: Consumer Price Index: Urban.

The unemployment rate in the United States falls slowly in expansions, and it may not reach its previous low point before the next recession begins. Based on this feature, I document that the frequent recessions prior to 1983 are associated with an upward trend in the unemployment rate. In contrast, the long expansions beginning in 1983 are associated with a downward trend. I then estimate a two-variable vector autoregression (VAR) that includes the unemployment rate and a recession indicator. Long-horizon forecasts from this VAR conditioned on no future recessions project that the unemployment rate will go to 3.6 percent after a long period with no recessions.

United States Median Wage Growth: 3-Mo Mov Avg: From 1983 data was reported at 4.300 % in Apr 2025. This stayed constant from the previous number of 4.300 % for Mar 2025. United States Median Wage Growth: 3-Mo Mov Avg: From 1983 data is updated monthly, averaging 4.100 % from Mar 1983 (Median) to Apr 2025, with 472 observations. The data reached an all-time high of 6.700 % in Aug 2022 and a record low of 1.600 % in May 2010. United States Median Wage Growth: 3-Mo Mov Avg: From 1983 data remains active status in CEIC and is reported by Federal Reserve Bank of Atlanta. The data is categorized under Global Database’s United States – Table US.G113: Atlanta Fed Wage Growth Tracker: 3-Month Moving Average.

Graph and download economic data for Producer Price Index by Commodity: Machinery and Equipment: Commercial Food Products Machinery (Except Packaging and Cooking Equipment) (WPU11610409) from Dec 1983 to Sep 2025 about machinery, equipment, commercial, food, commodities, PPI, inflation, price index, indexes, price, and USA.

United States - Consumer Price Index for All Urban Consumers: Cable and Satellite Television Service in U.S. City Average was 599.29900 Index Dec 1983=100 in March of 2025, according to the United States Federal Reserve. Historically, United States - Consumer Price Index for All Urban Consumers: Cable and Satellite Television Service in U.S. City Average reached a record high of 601.67600 in February of 2025 and a record low of 100.00000 in December of 1983. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Consumer Price Index for All Urban Consumers: Cable and Satellite Television Service in U.S. City Average - last updated from the United States Federal Reserve on December of 2025.

The gross domestic product (GDP) at current prices of Bolivia stood at 46.97 billion U.S. dollars in 2024. Between 1983 and 2024, the GDP rose by 46.97 billion U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. From 2024 to 2026, the GDP will increase by 18.88 billion U.S. dollars.

CPI Median in the United States decreased to 3.50 percent in September from 3.60 percent in August of 2025. This dataset provides - United States CPI Median- actual values, historical data, forecast, chart, statistics, economic calendar and news.

United States CPI W: Recreation: VA: Cable Televisions data was reported at 469.840 Dec1983=100 in Jun 2018. This records a decrease from the previous number of 469.988 Dec1983=100 for May 2018. United States CPI W: Recreation: VA: Cable Televisions data is updated monthly, averaging 278.700 Dec1983=100 from Dec 1983 (Median) to Jun 2018, with 415 observations. The data reached an all-time high of 472.464 Dec1983=100 in Mar 2018 and a record low of 100.000 Dec1983=100 in Dec 1983. United States CPI W: Recreation: VA: Cable Televisions data remains active status in CEIC and is reported by Bureau of Labor Statistics. The data is categorized under Global Database’s USA – Table US.I012: Consumer Price Index: Urban Wage and Clerical Workers.

United States PPI: Mfg: Food: GO: Breakfast Cereal (BC): Dec 1983=100 data was reported at 295.089 Dec1983=100 in Mar 2025. This stayed constant from the previous number of 295.089 Dec1983=100 for Feb 2025. United States PPI: Mfg: Food: GO: Breakfast Cereal (BC): Dec 1983=100 data is updated monthly, averaging 174.000 Dec1983=100 from Dec 1983 (Median) to Mar 2025, with 496 observations. The data reached an all-time high of 295.089 Dec1983=100 in Mar 2025 and a record low of 100.000 Dec1983=100 in Dec 1983. United States PPI: Mfg: Food: GO: Breakfast Cereal (BC): Dec 1983=100 data remains active status in CEIC and is reported by U.S. Bureau of Labor Statistics. The data is categorized under Global Database’s United States – Table US.I083: Producer Price Index: by Industry: Manufacturing: Food.

Coincident Economic Activity Index for Kentucky was 141.82000 Jul 1992=100 in August of 2025, according to the United States Federal Reserve. Historically, Coincident Economic Activity Index for Kentucky reached a record high of 141.82000 in August of 2025 and a record low of 50.96000 in January of 1983. Trading Economics provides the current actual value, an historical data chart and related indicators for Coincident Economic Activity Index for Kentucky - last updated from the United States Federal Reserve on December of 2025.

United States Median Wage Growth: 3-Mo Mov Avg: From 1983: Non-Smoothed data was reported at 4.200 % in Apr 2025. This records a decrease from the previous number of 4.400 % for Mar 2025. United States Median Wage Growth: 3-Mo Mov Avg: From 1983: Non-Smoothed data is updated monthly, averaging 4.100 % from Jan 1983 (Median) to Apr 2025, with 478 observations. The data reached an all-time high of 7.400 % in Jun 2022 and a record low of 1.100 % in Dec 2009. United States Median Wage Growth: 3-Mo Mov Avg: From 1983: Non-Smoothed data remains active status in CEIC and is reported by Federal Reserve Bank of Atlanta. The data is categorized under Global Database’s United States – Table US.G113: Atlanta Fed Wage Growth Tracker: 3-Month Moving Average.

Coincident Economic Activity Index for Missouri was 141.85000 Jul 1992=100 in August of 2025, according to the United States Federal Reserve. Historically, Coincident Economic Activity Index for Missouri reached a record high of 142.46000 in December of 2024 and a record low of 52.45000 in February of 1983. Trading Economics provides the current actual value, an historical data chart and related indicators for Coincident Economic Activity Index for Missouri - last updated from the United States Federal Reserve on December of 2025.

Since the late 1970s, the U.S. auto market has suffered a severe decline. Total auto sales (domestic and foreign) have fallen from the highs of over 11 million units in 1977 and 1978 to an anemic average of 8.5 million units since 1980. The sales performance of U.S. autos has become one of the business horror stories of the 1980s, as imports consistently have captured a greater share of the shrinking new-car market. Accompanying the sales dive of U.S. autos is a corresponding dip in the capacity utilization rate of U.S. motor vehicle industries; this measure fellfrom 99 percent in 1977 to approximately 60 percent in 1982. Total employment in these industries declined nearly 27 percent over the same period. With an industry so decimated, it has been difficult for market analysts to predict the level of auto sales in 1983. After examining the sources of new-car demand, we still question whether the recent weakness in the auto industry is temporary or whether it represents a long-run downward adjustment that could continue indefinitely.

Graph and download economic data for Federal income and excess profits taxes, IRS: U.S. tax credits claimed: Investment tax credit (B1192C1A027NBEA) from 1962 to 1983 about foreign, credits, tax, investment, federal, income, GDP, and USA.

The value added by the agriculture, forestry, and fishing sector to the gross domestic product in Uruguay amounted to 3.44 billion U.S. dollars in 2023. Between 1983 and 2023, the value added rose by 1.39 billion U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend.

Crude Oil fell to 59.17 USD/Bbl on December 2, 2025, down 0.25% from the previous day. Over the past month, Crude Oil's price has fallen 3.08%, and is down 15.40% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Crude Oil - values, historical data, forecasts and news - updated on December of 2025.