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.

Paul Craig Roberts is the John M. Olin fellow at the Institute for Political Economy and former Assistant Secretary of the Treasury for Economic Policy.
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Other Independent Review articles by Paul Craig Roberts
Winter 2020/21 What Is Supply-Side Economics? Four Decades Later Wikipedia and Academic Economists Still Don’t Know
Fall 2009 Letter to the Editor
Spring 2004 My Time with Karl Marx
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