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

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  • Magazzino, Cosimo

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.

Suggested Citation

  • Magazzino, Cosimo, 2010. "The Economic Policy of Ronald Reagan. Between Supply-Side and Keynesianism," MPRA Paper 25537, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25537
    as

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    File URL: https://mpra.ub.uni-muenchen.de/25537/4/MPRA_paper_25537.pdf
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    References listed on IDEAS

    as
    1. Danziger, Sheldon, 1983. "Budget Cuts as Welfare Reform," American Economic Review, American Economic Association, vol. 73(2), pages 65-70, May.
    2. Orzechowski, William, 1991. "Reaganomics and the Use of Collective Rebates," Public Choice, Springer, vol. 69(3), pages 311-322, March.
    3. 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.
    4. Modigliani, Franco, 1988. "Reagan's Economic Policies: A Critique," Oxford Economic Papers, Oxford University Press, vol. 40(3), pages 397-426, September.
    5. 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.
    6. 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 357-361, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Reaganomics; Supply-Side Economics; Laffer curve; tax cuts; twin deficits; IS-LM model; VAR.;
    All these keywords.

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-

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