It's nice to know that you hold Volker in such high regard. You think he got bossed around by a complete failure.
I think Volcker knew it was going to take time and that he could restart it after the election.
What I don't understand about your theory is (1) why Carter nominated him for the FED in light of his overt commitment to restraining inflation through high interest rates;
Because I don't think Carter understood what the consequences of Volckers policies would be.
(2) why Carter allowed Volker to ramp up the fed funds target to 19% in the first instance during an election year;
he didn't. It didn't even hit 18%.
(3) why Carter allowed Volker to have interest rates increase from the end of the 1980 recession through election day 1980; and
Wow, that is just completely dishonest. In July of 1980, rates were about 9%. That is LOWER than where rates were when Volcker took office you dishonest hack. The Fed Funds rate was at 10.83% in September of 1980, STILL BELOW where rates were when Volcker took over the Fed. Yes, in the weeks prior to the election rates began to escalate back up. But in no way were they going to have time to effect the economy prior to the election.
We didn't have 24/7 media back then and most people wouldn't have had a clue that the rate was going back up. The people saw the EFFECTS not the actual moves back then. (for the most part... obviously the experts knew what was happening).
(4) why Volker would give a shit what Carter wanted. None of it makes any sense.
Because it helps to have the President on board in a situation like that. The President is the one that has to explain the effects of the policy to the people. Had he continued, Carter could have just thrown him under the bus and Volcker may not have been in place long enough to complete his plan.
It's obvious that you've started at the conclusion that Ronald Reagan was the best president evah and that Jimmy Carter was the worst
The above is just nonsense. It is a feeble straw man attempt. I have stated many times that Ike was a better President than Reagan and that Reagan and Clinton are debatable for second in the last fifty years. I have also stated that Bush is worse than Carter, as is Obama.
You just post that nonsense, because you have no actual data to support your position. I hammered on Mutt for his idiotic comment stating that Carter inherited stagflation, which is 100% false.
and, working backwards from there, ridiculously conclude that Reagan in his grand magnificence allowed Volker to do his thing while Jimmy Carter didn't.
Which given the actions of Volcker is true. His actions were based on inflation under Reagan. They were not the same under Carter. So either Volcker had no idea what he was doing or he was influenced to do otherwise.
Nothing else explains the rapid rise then rapid fall of rates in 1980. A 7% decline in ONE MONTH. That had nothing to do with inflation. That had panic written all over it. Given what we know of the two men, I find it hard to believe (though it is debatable) that it was Volcker that lacked the faith in his plan.
The most likely scenario is that Volker did his thing, regardless of what either president wanted him to do. Of course, recognizing this wouldn't allow you to heap praise on St. Ronnie and scorn on Carter so you reject it.
Except that is not the most likely scenario. Otherwise Volcker would have reacted at least in a similar fashion in 1981 if not in the exact same manner. Yet he didn't. It wasn't even close.
