The Economic Policy of Ronald Reagan. Between Supply-Side and Keynesianism

Magazzino, Cosimo (2010): The Economic Policy of Ronald Reagan. Between Supply-Side and Keynesianism.

Abstract

“Reaganomics” is a popular term used to refer to the economic policies of Ronald W. Reagan, the 40th U.S. President (1981–1989), which called for widespread tax cuts, decreased social spending, increased military spending, and the deregulation of domestic markets. In this paper, we analyze American economic policy during the Eigh-ties. After a brief introduction, where a general economic context of that country is shown, we discuss and revise the economic literature about these issues. Afterwards, we present an augmented IS-LM model for Reagan years, estimated bay VAR techniques.

• Item Type: MPRA Paper
• Language: English
• Keywords: Reaganomics; Supply-Side Economics; Laffer curve; tax cuts; twin deficits; IS-LM model; VAR.
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E65 - Studies of Particular Policy Episodes; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N12 - U.S. ; Canada: 1913-

References

Aguado S. (1992), “Reaganomics: Ten Years Later”, Revista Española de Estudios Norteamericanos, a. III, N. 5, pp. 70-76.

Aguado S. (1990), “El legado económico del presidente Reagan”, ICE-Revista de economía, N. 684-685, pp. 127-140.

Aguado S. (1989), “La Politica Económica de Reagan en Perspectiva”, Economistas, a. VII, N. 40, October-November, pp. 62-67.

Anderson M. (1988), Revolution, Harcourt Brace Jovanovich, San Diego.

Anderson R. G. (1980), “Supply-Side Economics: Miracle Cure of More of the Same?”, The Freeman, November, pp. 673-676.

Bartlett B. (1982), “The Conservative Critics of Reaganomics”, The Intercollegiate Review, Fall/Winter, pp. 39-47.

Blanchard O. (1987), “Reaganomics”, Economic Policy, 5, October, pp. 17-48.

Boskin M. J. (1988), “Tax Policy and Economic Growth: Lessons From the 1980s”, Journal of Economic Perspectives, Vol. 2, N. 4, Autumn, pp. 71-97.

Buchanan J. M. (1985), Liberty, Market and State, New York, New York University Press.

Coats W. L. Jr. (1983), “Reaganomics and Deficits: A Response to Bruce Bar-tlett”, The Intercollegiate Review, Fall, pp. 45-49.

Cowen T. (1980), “Supply-Side Economics: Another View”, Policy Report, August, pp. 5-7.

Cowen T. (1981), “A Walk on the Supply-Side”, Libertarian Review, August, pp. 44-47.

Danziger S. (1983), “Budget Cuts as Welfare Reform”, American Economic Review, Vol. 73, No. 2, May, pp. 65-70.

Ebeling R. M. (1980), “Some Thoughts on Supply-Side Economics”, The Liberta-rian Forum, May/June, pp. 3-7.

Feldstein M. (ed., 1994), American Economic Policy in the 1980s, University of Chicago Press, Chicago.

Gordon R. (1985), “Understanding Inflation in the 1980s”, Brookings Papers on Economic Activity, 16(1).

Hausman J. A., Poterba J. M. (1987), “Household Behavior and the Tax Reform Act of 1986”, Journal of Economic Perspectives, Vol. 1, No. 1, pp. 101-120.

Horwich G. (1982), “Reaganomics: A Philosophical and Almost Midterm Pers-pective”, Research in Agricultural and Applied Economics.

Joskow P. L., Noll R. G. (1985), “Regulation in Theory and Practice: An Over-view”, in Fromm G. (ed.), Studies in Public Regulation, MIT Press, Cambridge, pp. 1-65.

Koop G. (2004), Analysis of Economic Data, Wiley, Oxford. Kudlow L. (1998), “Reaganomics: What Worked? What Didn’t?”, American Experiment Quarterly, Spring, pp. 73-85.

Lucas R. E. (1981), “Deficit Finance and Inflation”, New York Times, August 26, p. D2.

Marris S. N. (1985), “The Decline and Fall of the Dollar: Some Policy Issues”, Brookings Papers on Economic Activity, N. 1, pp. 237-244.

Médaille J. (2007), “The Myth of Reaganomics”, The Distributist Review, Friday, July 27.

Miller P. J. (1980), “Deficit Policies, Deficit Fallacies”, Federal Reserve Bank of Minneapolis – Quarterly Review, Summer, pp. 2-4.

Miller P. J., Struthers A. Jr. (1980), “The Tax Cut Illusion”, Federal Reserve Bank of Minneapolis – 1979 Annual Report, pp. 1-9.

Mills G. B., Palmer J. L. (1983), The deficit dilemma: Budget policy in the Reagan era, The Urban Institute Press, Washington.

Modigliani F. (1988), “Reagan’s Economic Policies: A Critique”, Oxford Economic Papers, Vol. 40, N. 3, September, pp. 397-426.

Modigliani F., Modigliani A. (1987), “The Growth of Federal Deficit and the Role of Public Attitudes”, Public Opinion Quarterly, 51.

Niskanen W. A. (1988), Reaganomics: An insider’s account of the policies and the people, Oxford University Press, New York.

Orzechowski W. (1991), “Reaganomics and the use of collective rebates”, Public Choice, Vol. 69, N. 3, March, pp. 311-322.

Palmer J. L., Sawhill I. V. (eds., 1982), The Reagan experiment: An examination of economic and social policies under the Reagan administration, The Urban Institute Press, Washington.

Reagan R. W. (1981), Public Papers of the Presidents, Ronald Reagan 1981, US Gov-ernment Printing Office, Washington DC. Rothbard M. N. (2004), “The Myths of Reaganomics”, Mises Daily, Wednesday, June 9.

Sennholz H. F. (1980), “Professor Hans F. Sennholz Examines Supply-Side Economics”, The Review of the News, September 20, pp. 53-58.

Smyth D. T., Dua P. (1988), “Public Perceptions of Macroeconomic Policy: An Econometric Analysis of the Reagan Presidency”, The Review of Economics and Statistics, Vol. 70, No. 2, May, pp. 357-361.

Stockman D. (1986), The Triumph of Politics, Harper & Row, New York.

Stubblebine W. C., Willett T. D. (eds., 1983), Reaganomics: A midterm report, ICS Press, San Francisco.

Taylor J. B. (1995), “Changes in American Economic Policy in the 1980s: Wa-tershed or Pendulum Swing?”, Journal of Economic Literature, Vol. 33, N. 2, June, pp. 777-784.

Throop A. W. (1991), “Fiscal Policy in the Reagan Years: A Burden on Future Generations?”, Economic Review, N. 1, Winter.

Valli V. (2010), L’economia Americana da Roosevelt a Obama, Carocci, Roma.

Viscusi W. K. (1982), “Health and Safety”, Regulation, January/February, pp. 34-36.

Weintraub S., Goodstein M. (eds., 1983), Reaganomics in the stagflation economy, University of Pennsylvania Press, Philadelphia.

Zinam O. (1982), “A note on Reaganomics”, Atlantic Economic Journal, Vol. 10, N. 4, December, p. 98.