The CONVERSATION presents a far-reaching study of the US economy from 1964 to 1991 by DICK BOVE, chief financial strategist at ODEON CAPITAL GROUP. The study covers a turbulent period of stagflation, oil embargoes, economic stress, street riots and political upheaval. It is a textbook case of the big “guns and butter” spending programs that fueled the inflationary spiral of the 1970s, from outlays on housing and the military to Medicare and Medicaid, according to BOVE. As BOVE reminds listeners, social unrest led to riots on the streets. MAT VAN ALSTYNE, ODEON co-founder and managing partner, says the study stands in contrast to the popular narrative of how the adoption of a fiat currency and oil embargoes were at the root of the economic stress during this period. At the same time, JOHN AIDAN BYRNE notes the complex reality of this era, pointing to the breakdown in the social order, a cultural revolution, de-industrialization and other factors.

The CONVERSATION returns to the persistent theme of inflation with an eye on this week’s Annual Economic Policy Symposium in Jackson Hole. “The Fed should take a strong cautionary stand that they are going to kill inflation,” BOVE said. Rising prices would cause the economy to collapse, he adds. VAN ALSTYNE wonders how credible and impactful the US Fed’s statement will be coming out of Friday’s meeting at Jackson Hole, since this time last year, the Fed thought among other things the then signs of inflation were “transitory.”

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