“Volcker also brought the economy to a halt, which devalues the currency “
Actually it has the opposite effect on the dollar. Halting inflation made the dollar very strong, far more than the Reagan economic team expected.
“I have read that Reagan gave Volcker the green light to do what he did. Nobody’s perfect.”
Well if they hadn’t done that inflation wouldn’t have ceased. Part of the problem was breaking the inflationary expectations and behavior of the public at large. We were spending money as fast as we got it because we expected it to continue to devalue, so monetary velocity was through the roof. Slamming the breaks on credit growth stopped that.
Actually it has the opposite effect on the dollar.
...
Go ahead and explain how reducing the production of goods and services strengthens a currency.
All Volcker had to do was reduce money creation to match Reagan’s policies of smaller government and more private sector productivity. Volcker went way too far. And inflation wasn’t halted, it was reduced.
Funny how you and other Conservatives choose to toe the line of Democrat Volcker and others who believe that only Big Government can solve problems.