A Reagan/Volcker Recovery

With the recent interest in Market Monetarists among Supply-Siders, I think it is time to review my posts on a "Reaganite Monetary Policy."

And a bit more on the proposal is here.

During the Reagan/Volcker recovery, nominal GDP grew at about 10% and inflation ran about 3%.    Real output rose and unemployment fell in the "V-shaped" recovery.

When Market Monetarists propose that a substantial portion of the drop in the growth path of nominal GDP be reversed, they are simply advocated the same kind of policy that Reagan and Volcker implemented in the early eighties.