During the recession of the early 1980s Sen. Howard Baker from Tennessee threatened to take away the Federal Reserve Board's monetary powers and place the power in the hands of Congress. Baker and other Republicans in Congress were unhappy with the FRB's tight money policies.

James Baker III was a wealthy Texas lawyer who was known for representing oil companies. He entered politics and managed George Bush's 1980 presidential bid. When Bush became vice president, Baker became a key figure in the Reagan administration, serving first as chief of staff and later as secretary of the treasury (switching places with Donald Regan).

As a young Washington economist, Lauri Bassi discovered that during the 1980s women's share of poverty was rising along with women's share of employment because divorce was forcing women into low-paying jobs.

President Jimmy Carter appointed Paul Volcker as chairman of the Federal Reserve...