What caused the 1980's recession?

The 1980s recession was primarily caused by tight monetary policy implemented by the Federal Reserve to combat high inflation, which peaked in the late 1970s. The rise in interest rates led to reduced consumer spending and business investment, resulting in a sharp contraction in economic activity. Additionally, factors such as the oil price shocks and a decline in the manufacturing sector further exacerbated the downturn. The combination of these elements led to significant unemployment and a slowdown in economic growth.