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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: RMF who wrote (69110)	2/17/2014 8:33:13 PM
From: TimF	Read Replies (2) \| Respond to of 71588

Reagan and Carter both wanted to tighten monetary policy to squeeze out inflation. But it was mostly Volker's work (if perhaps not something that could have succeed to the same extent without presidential support, or at least acceptance). In any case its likely that the economy would have to be slightly "crushed' in order to squeeze out the inflation. Tightening had happened before but it always went away any time the economy looked to be weak, and esp. if there was a recession, even if prices where still increasing. Until the fed acted differently the expectation would be for more of the same, strong loosening whenever the economy dips downwards. That was the Reagan Administration's goal. To just DESTROY the economy and blame it all on Carter and then take credit for the INEVITABLE growth that came from gradually lowering interest rates. That charge is totally unsupported and even rather unreasonable.