[dufekin]

How did Reagan get oil prices to plunge from $50/bbl to $20/bbl within a year, igniting the terrible economic malaise that characterized the end of his Administration?

[EVO X]

How did Reagan get oil prices to plunge from $50/bbl to $20/bbl within a year, igniting the terrible economic malaise that characterized the end of his Administration?

If my memory serves me correctly, the dollar was weak against foreign currencies. As soon as he got elected, the dollar took off. I was in Italy at the time. The Lira went from 800 to 1200 Lira to the $ in a matter of weeks. I think the dollar rose in similar fashion against other currencies.

[economist-student]

Paul Volcker, he can be also be credited with saving the US Dollar from collapse.

He raised interest rates while also diminishing money creation, although it was a hard recession, Volcker really saved the US Economy and the dollar from the malaise of the 70's.If it weren't for him, we wouldn't have had "low price inflation" during the late 80's and throughout the 90's.