EconProf, what always is missing in every conservative description of the 80’s is how Reagan got us out of that nasty recession.
1)Volker cranked up interest rates
2)The economy contracted
3)Reagan caved and borrowed to reflate the economy.
4)Borrowing is just a way to temporarily export your inflation. Reagan was aided and abetted by a Democratic congress, but the only way he could reflate the economy was through some form of inflation. The playbook is always thus.
