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The economic policy of Ronald Reagan

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  • Magazzino, Cosimo
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    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.

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    File URL: http://mpra.ub.uni-muenchen.de/23930/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23930.

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    Date of creation: 30 Jun 2010
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    Handle: RePEc:pra:mprapa:23930

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    Keywords: Reaganomics; Supply-Side Economics; Laffer curve; tax cuts; twin deficits; IS-LM model; VAR.;

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    1. Orzechowski, William, 1991. " Reaganomics and the Use of Collective Rebates," Public Choice, Springer, vol. 69(3), pages 311-22, March.
    2. W. Kip Viscusi & Christopher DeMuth & James Burnley, 1994. "Health and Safety Regulation," NBER Chapters, in: American Economic Policy in the 1980s, pages 453-518 National Bureau of Economic Research, Inc.
    3. Danziger, Sheldon, 1983. "Budget Cuts as Welfare Reform," American Economic Review, American Economic Association, vol. 73(2), pages 65-70, May.
    4. Adrian W. Throop, 1991. "Fiscal policy in the Reagan years: a burden on future generations?," Economic Review, Federal Reserve Bank of San Francisco, issue Win, pages 3-23.
    5. Smyth, David J & Dua, Pami, 1988. "Public Perceptions of Macroeconomic Policy: An Econometric Analysis of the Reagan Presidency," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 357-61, May.
    6. Stephen N. Marris, 1985. "The Decline and Fall of the Dollar: Some Policy Issues," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 16(1), pages 237-244.
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