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To: Moonman62

Amazing that anyone could be as ignorant as the author of this piece.

There was no economic growth occurring during the ‘70s stagflation, which is exactly why the Phillips Curve was discredited then. It predicted that the rampant inflation would be accompanied by growth, not stagnation.

Anyway Reagan understood and supported what Volcker was doing to choke off inflation. It was the prescription promoted by Milton Friedman and the Monetarist School. Stop the growth of the money supply long enough to break the inflationary cycle, and don’t allow credit growth in excess of the economy.


6 posted on 12/18/2019 12:32:38 PM PST by Pelham (Obama. Seditious conspiracy. Misprision of treason.)
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To: Pelham

Anyway Reagan understood and supported what Volcker was doing to choke off inflation.

...

That was one of Reagan’s mistakes. Reagan also raised taxes at one point, another mistake.

Most of the credit should go to the American people for taming high inflation, not just for their natural ability to grow the economy, but also the incredible growth of the technology sector. Reagan got the government out of the way enough for the American people to do their thing.

Volcker caused a nasty recession and set the foundation for the savings and loan crisis. He doesn’t deserve credit for anything more than that.


7 posted on 12/18/2019 1:28:18 PM PST by Moonman62 (Charity comes from wealth, or producing more than we consume.)
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