Btw
Reagan renominated Volcker to the Fed in 1983
Don’t think he hated him
My college in the South brooked no liberals in the late 70s
Maybe some Freedom Riders in the Political Science dept
Much different from today where they will eventually ban Faulkner as a racist
Reagan renominated Volcker in 1983.
...
It doesn’t matter who was nominated. All Fed Chairmen pretty much act the same way. They all promote the incorrect theory that economic growth and wage increases cause inflation.
Every where there is high inflation you’ll find a lot of government debt combined with damage to the supply side of the economy. Zimbabwe and Venezuela are recent examples.
Significant in the United States during the 70’s that hurt the supply side of the economy was oil industry regulation and price controls.
“Reagan renominated Volcker to the Fed in 1983. Don’t think he hated him”
Reagan had a lot of respect for Volcker. I dunno if that respect was reciprocated, but Reagan knew what Volcker was doing in order to kill inflation and he was willing to ride it out.
What’s a shame is that Volcker’s program of choking off inflation via high interest rates could have been done a decade earlier before all of the damage done in the ‘70s. It wasn’t anything new. Arthur Burns or William Miller before him could have done it. We got lucky with Reagan and Volcker being in agreement.
Earlier in his career Volcker had worked at Treasury while JFK was President, when Kennedy proposed his tax cut program to stimulate the economy. So Volcker was involved in both the Kennedy and Reagan programs.
But what I find curious is that I once saw Volcker say that the two programs weren’t all that similar; I believe it’s in his book “Changing Fortunes”; but I never saw him explain what the differences were.