Also, you should be aware that Reagan considered libertarianism to be the heart of conservatism.
Here we go again. Haven't been here for a long while. I debated with many libertarians and Libertarians over this interview.
Here's the interview you're refering to. Inside Ronald Reagan: A Reason Interview, July 1975
This was one interview in a 30 year political career were Ronald Reagan ever mentioned the term "libertarian". Reason magazine is a libertarian publication and in all his interviews, Reagan was always the gentleman and the consummate politician. He understood the need to make appeals across the political spectrum. But Ronald Reagan was no libertarian. He was a conservative Republican. He never surrendered his conservative principles. Reagan was a law and order conservative, a social conservative and a fiscal conservative. I think the following line form that interview is very telling.
"... there are libertarians who are almost over at the point of wanting no government at all or anarchy."
Libertarian's are strong fiscal conservatives. Milton Friedman is a libertarian and along with conservatives like George Shultz, Alan Greenspan, Arther Laffer and Arthur Burns, was one of many economic advisors to Reagan during his Presidency.