Monetarism and Reaganomics

Louise Davidson

Chapter 19 in Money and Employment, 1990, pp 308-318 from Palgrave Macmillan

Abstract: Abstract Despite the prolonged existence of idle plant and heavy unemployment among a literate, trained labour force, the United States seems unable to mobilize these resources to rebuild our decaying cities, to revitalize mass transit, to regenerate clear air and waterways, and so on. Why are we so impotent? Conventional wisdom suggests that any mobilization of idle resources for a war on such things as decay, pollution, poverty will require either additional government expenditures or private sector tax cuts. This means huge deficits financed by increasing the quantity of money which, monetarists claim, can only fuel the fires of inflation. Until we tame the dragon of inflation, we are told, these projects - no matter how desirable - must wait. Conventional wisdom says we must stoically accept tight money and stringent constraint on governmental spending for many years (the long run?) if inflation is to be stopped.

Keywords: Monetary Policy; Federal Reserve; Money Supply; Rational Expectation; Restrictive Policy (search for similar items in EconPapers)
Date: 1990
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-1-349-11513-6_20

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349115136

DOI: 10.1007/978-1-349-11513-6_20

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().