The budget deficit first rose in the 70s (after 1973)
as a consequence of the accumulation of ? savings
by the pension funds which had to be found a use.
In 1979 + Reagan added to this, first, a
structural deficit by cutting ? + increasing defense outlay
second, by increasing interest (from 1980)
through restriction from ? on Volker 1979 Nov.
they increased the dollar from 1980 to 84/85
and
This created depression this prepared the fall in
1980-1982 current account balance
from 1982 on