Reagan's Economic Policies: A Critique

Franco Modigliani

Oxford Economic Papers, 1988, vol. 40, issue 3, 397-426

Abstract: The Reagan administration is credited with one major success: the reduction in inflation. But it was not achieved painlessly, through "monetarism" and "supply" policies. Money growth swung widely and disinflation required, as always, a high and protracted unemployment rate. The deep tax cuts failed to increase saving, but contributed to the largest deficits in U.S. peace time history, high interest rates , dollar overvaluation, loss of competitiveness, and rising foreign d ebt. Output grew weekly as unemployment was high through 1987 and productivity growth low. Nonetheless, real per capita disposable income grew substantially, but thanks to the tax reductions and gains in terms of trade which are destined to reverse. Copyright 1988 by Royal Economic Society.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819880 ... 0.CO%3B2-R&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:oxecpp:v:40:y:1988:i:3:p:397-426

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().