Reaganomics

Discipline: Economics

Named after ex-actor and former American president Ronald Reagan (1911-2004), who was an advocate of supply-side economics.

Reagan stressed the need to reduce taxes, deregulate the economy and modernize US defence as part of his policy.

The monetarist economist Milton Friedman (1912-1992) acted as his policy adviser (1981-1990), and Reagan followed a domestic policy of tax reduction and deficit financing. This resulted in economic growth in the economy (1983-1986), but by the end of Reagan's administration, the US was suffering from high budget and trade deficits.

Also see: monetarism, Thatcherism

Source:
M Boskin, Reagan and the Economy (San Francisco, 1989)

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