The corollary to simply removing dollars, is lowering the cost of production, so there are more goods for those dollars to chase. That’s what Volker did.
Short term deflation, unfortunately, but that’s the only way I am aware of to tackle inflation is to remove dollars to make them more valuable.
But inversely Paul Volcker's policy's drove interest rates up so fast that farming, manufacturing and construction had to lay vast amounts of people off (creating a 10% unemployment rate back when the numbers weren't fudged) and setting off a two year recession before balance was eventually restored.
Just saying that Silver Cloud had a Dark Lining. This Usurper Regime's printing too much money without backing worth combined with preposterous spiraling debt is either incompetence or deliberate destruction. Probably a combination of the two for maximum effect.
BTW - you were great in "Reservoir Dogs".
Volker crashed the ecnomy. He ruined many a young person’s life for many years to come.....
“The corollary to simply removing dollars, is lowering the cost of production, so there are more goods for those dollars to chase. That’s what Volker did.”
Excellent point, but the Biden administration has done so much to increase the cost of production, it will be hard to correct.
Close low cost coal-fired electricty generation for a couple of years? If the plants were not destroyed, they will take months or years to restore to working order. Meantime, what happened to the laid off miners and closed mines? Repairing the Democrat damage to the economy will not be like flipping a switch.
The DemocRats have placed the US on a slippery slope to a Great Depression 2.0. And a lot of ways they have done it are not easily reversible.