	volcker sees tight policy hurting investment federal reserve board chairman paul volcker said a restrictive monetary policy would be damaging to investment and that a better course would be to restrain spending a restrictive monetary policy would hit investment you don t want to put interest rates up unless you have to volcker told the senate banking committee that is not a constructive way to proceed he said volcker said that given a choice between squeezing the budget deficit or squeezing investment he would favor squeezing the budget deficit in response to a question about banks volcker said he would be pleased if congress decided to give banks a tax writeoff as an incentive for them to take greater reserves against loans to debtor countries if you give a tax writeoff for reserving against loans then we will see more reserving and that would make me happy volcker told committee chairman sen william proxmire d wisc reuter 
