The supply-siders of the Reagan era convinced leaders of both parties, to varying degrees, that stagflation had resulted from a policy mix that pumped up demand with easy money while restricting output with high tax rates. Supply-side economists recommended that monetary policy be used to restrain inflation and fiscal policy be used to change relative prices and increase aggregate supply.
|Other Independent Review articles by Paul Craig Roberts|
|Fall 2009||Letter to the Editor|
|Spring 2004||My Time with Karl Marx|
|Spring 2003||The Causes of Wrongful Conviction|
|[View All (7)]|