…Reagan and Volcker gang up, the US Federal Government usually has a slack intertemporal budget constraint. Economists generally assume other wise, because we do maximization under constraint, and don’t like…

…this outcome, with several states such as Kansas and Oklahoma suffering severe crises given their balanced budget rules requiring them to cut spending in the face of declining revenues after…

…International banks were happy to recycle the dollars that the oil-exporters had placed on deposit with them. The crisis came when the Federal Reserve under Paul Volcker raised interest rates,…

…Low and behold, the Fed will whack consumers, the peasants of the economy. This is not unusual, Volcker did it as did Greenspan. Main Street paid for Wall Street in…

…or Overhead are up. And the governor of the Bank of England wants to whack Labor the same as every Fed has done since Volcker. The stimulus packages are decreasing…

…as it does not influence monetary policy (called fiscal dominance). Loose fiscal and tight monetary can cause problems, but it does not necessarily cause inflation (in fact Volcker ended the…

…rate. Why? Well, for example, the Sahm Rule is that when the 3 month moving average of the unemployment rate rises by 0.5% relative to its low in the previous…

…USA in the 1980s because Paul Volcker was very tough and Presidents can’t change the law easily. A law declared the Bank of England to be independent, but it is…

…to put the US in a deep recession in the next 12 months. This is very not good. “The Fed appears determined to cause a Volcker-like recession,” Angry Bear, angrybearblog.com…

…4% in just 9 months, the fastest rate of increase since Volcker’s recession of 1981. These interest rate increases have created recessionary sales numbers in the housing industry, caused banks…