Did Reagan and Co. "force" the deep 1981-1982 recession?
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  Did Reagan and Co. "force" the deep 1981-1982 recession?
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Author Topic: Did Reagan and Co. "force" the deep 1981-1982 recession?  (Read 1623 times)
sg0508
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« on: January 03, 2014, 11:06:45 PM »

To solve the "misery index", interest rates rose to kill inflation, which of course reduced consumption/investment spending and promoted a recession, perhaps the worst since the Great Depression (until 2008/2009).  Of course, inflation dropped to under 6%, but unemployment went through the roof. 

Was there anything that could have been done to avoid that recession, or was it a necessary evil? Of course, starting in Q3'83, the economy rapidly recovered, including 1984, which lasted until mid 1990.
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Comrade Funk
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« Reply #1 on: January 04, 2014, 12:32:02 AM »

Paul Volker more than Reagan
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Indy Texas
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« Reply #2 on: January 04, 2014, 02:56:40 AM »

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Southern Senator North Carolina Yankee
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« Reply #3 on: January 04, 2014, 09:19:21 AM »

Maybe if some massive supply of oil was discovered and instantly brought onto the market causing prices for energy to rapidly drop. As a root product that might have had countered the inflation.

It should be noted that one of the reasons why the growth of the 80's and 90's was not accompanied by higher inflation was that energy prices remained relatively low.

It was probably unvoidable considering how unrealistic the first paragraph is.
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MATTROSE94
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« Reply #4 on: January 21, 2014, 08:43:58 PM »

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sg0508
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« Reply #5 on: October 07, 2014, 10:32:01 AM »

Interesting, but I guess it was the whole "Reagan Principle" of hiring people smarter than yourself to run key areas. 
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True Federalist (진정한 연방 주의자)
Ernest
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« Reply #6 on: October 07, 2014, 11:10:10 PM »


Tho if it hadn't been for Miller the economy likely would never have gotten so bad.  Thankfully Carter was willing to promote Miller out of the job and into Secretary of the Treasury so as to get someone in there who was up to the job of Fed Chair.
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True Federalist (진정한 연방 주의자)
Ernest
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« Reply #7 on: October 07, 2014, 11:11:52 PM »

Interesting, but I guess it was the whole "Reagan Principle" of hiring people smarter than yourself to run key areas. 

Except Carter hired Volcker.
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Maxwell
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« Reply #8 on: October 08, 2014, 09:15:56 AM »

It was a necessary evil, it kind of had to happen.
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