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The brand new thus-called "High Moderation" of fiscal conditions as the seventies are paid so you can financial plan targeting price stability. The reason being the brand new Government Set aside has targeted maybe not zero inflation, but a low, secure rates out of inflation—ranging from 1987 and you can 1997, the speed out of rising cost of living are up to step 3.5%, and you will between 1997 and you will 2007 it actually was around dos%. The fresh Federal Put aside fasten the cash have and you can rising cost of living is actually considerably reduced in the new 1980s, and therefore the worth of the brand new You.S. dollar stabilized. This was largely because of the prevalent financial view during the date you to definitely rising prices and you may actual economic growth have been linked (the brand new Phillips bend), thereby inflation is thought to be seemingly ordinary. The newest Federal Reserve first succeeded in the keeping the worth of the new U.S. buck and you can price stability, reversing the fresh inflation caused by the first World Battle and you can stabilizing the value of the newest dollar inside the 1920s, just before presiding more a good 29% deflation in the You.S. prices in the 1930s.