Why were interest rates so high in 81-82 recession?

[PoPPeR]

We're studying interest rates and this point was brought up. Since normally in a recession, interest rates are low, why were they so high in 81-82? Economically speaking of course

 

[PlatinumGold]

because of the hyperinflation we had during the '70's.

 

[Bekker]

I think the Fed instigated a tight monetary policy because of the high inflation. It was a rare recession because there was high inflation but also high unemployment.

 

[Vic]

high inflation and large budget deficit

Inflation was the real kicker though. Investors won't buy long-term bonds and securities if the yields are less than the rate of inflation.