American Economic Policy in the 1980s (National Bureau of Economic Research Conference Report)

Destined to become the standard guide to the economic policy of the United States during the Reagan era, this book provides an authoritative record of the economic reforms of the 1980s. In his introduction, Martin Feldstein provides compelling analysis of policies with which he was closely involved as chairman of the Council of Economic Advisers during the Reagan administration: monetary and exchange rate policy, tax policy, and budget issues. Other leading economists and policymakers examine a variety of domestic and international issues, including monetary and exchange rate policy, regulation and antitrust, as well as trade, tax, and budget policies. The contributors to this volume are Alberto Alesina, Phillip Areeda, Elizabeth Bailey, William F. Baxter, C. Fred Bergsten, James Burnley, Geoffrey Carliner, Christopher DeMuth, Douglas W. Elmendorf, Thomas O. Enders, Martin Feldstein, Jeffrey A. Frankel, Don Fullerton, William M. Isaac, Paul L Joskow, Paul Krugman, Robert E. Litan, Russell B. Long, Michael Mussa, William A. Niskanen, Roger G. Noll, Lionel H. Olmer, Rudolph Penner, William Poole, James M. Poterba, Harry M. Reasoner, William R. Rhodes, J. David Richardson, Charles Schultze, Paula Stern, David Stockman, William Taylor, James Tobin, W. Kip Viscusi, Paul A. Volcker, Charles E. Walker, David A. Wise, and Richard G. Woodbury. Ronald Reagan's election in 1980 reflected widespread public discontent with high inflation, rising personal taxes, and increasing government spending. Committed to reversing the economic trends of the 1960s and 1970s, Reagan sought to bring about essential changes in the American economy through smaller government and decreased spending on domestic programs. His election marked a return to traditional market-oriented ideas and a shift away from the Keynsian economics that defined the postwar decades. The policy changes he introduced included reallocation of public spending and serious reforms in the tax system. Taxes were lowered and inflation was brought down, but the changes also produced a spiraling government debt. The sharpest post-World War II recession preceded nearly eight years of strong economic growth. In American Economic Policy in the 1980s, policy makers in the Reagan administration and leaders in academia provide a comprehensive look at the fundamental economic reforms of the 1980s and offer their unique views of how and why economic policy developed the way it did. In his substantial introductory essay, Martin Feldstein thoughtfully comments on aspects of policy with which he was closely involved as chairman of the Council of Economic Advisers (1982-1984): monetary and exchange rate policy, tax policy, and budget issues. Feldstein offers his judgments on these policies and illuminates the policy strategies of the 1980s as only an insider can. The eleven chapters that follow deal with a variety of domestic and international issues, including developments in regulation and antitrust, as well as monetary, trade, tax, and budget policies. Each chapter begins with a scholarly background study, is complemented by personal essays from former policy makers, and is followed by discussions among the contributors . The volume provides an authoritative record of the economic reforms characteristic of the Reagan era, and it will be the standard reference for everyone, economists and laypersons alike, interested in the hows and whys of American economic policy in the 1980s. American Economic Policy In The 1980s : A Personal View / Martin Feldstein -- Monetary Policy / Michael Mussa, Paul A. Volcker, James Tobin -- Tax Policy / Don Fullerton, Charls E. Walker, Russell B. Long -- Budget Policy / James M. Poterba, David Stockman, Charles Schultze -- Exchange Rate Policy / Jeffrey A. Frankel, C. Fred Bergsten, Michael Mussa -- Economic Regulation / Paul L. Joskow And Roger G. Noll, William Niskanen, Elizabeth Bailey -- Health And Safety Regulation / W. Kip Viscusi, Christopher Demuth, James Burnley -- Financial Regulation / Robert E. Litan, William M. Isaac, William Taylor -- Antitrust Policy / Phillip Areeda, William F. Baxter, Harry M. Reasoner -- Trade Policy / J. David Richardson, Lionel H. Olmer, Paula Stern -- Ldc Debt Policy / Paul Krugman, Thomas O. Enders, William R, Rhodes -- Policy Toward The Aged / David A. Wise And Richard G. Woodbury, Rudolph Penner. Edited And With An Introductory Essay By Martin Feldstein. Includes Bibliographical References And Indexes. In this work, policy-makers in the Reagan administration and leaders in academia offer their views of how and why economic policy in the 1980s developed the way it did. The contributors deal with a variety of domestic and international issues, including developments in regulation and antitrust. In this study, policymakers in the Reagan administration and academics offer a view of how and why economic policy in the 1980s developed the way it did. Monetary and exchange rate policy, tax policy and budget issues are discussed here.