Author : Jeffrey Sachs
Publisher :
ISBN 13 :
Total Pages : 82 pages
Book Rating : 4.:/5 (124 download)
Book Synopsis The Dollar and the Policy Mix, 1985 by : Jeffrey Sachs
Download or read book The Dollar and the Policy Mix, 1985 written by Jeffrey Sachs and published by . This book was released on 1985 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1971, Robert Mundell proposed a stunning solution to the three problems then affecting the U.S. economy: high inflation and unemployment, and a weak currency. Mundell suggested that the policy mix of fiscal expansion and monetary contraction could work to raise output, reduce inflation, and strengthen the currency at the same time. This policy mix has been pursued under the Reagan administration since 1981. The paper investigates the contributions of this policy mix to disinflation and output growth. It finds that the policy mix has contributed as much as three percentage points of the reduction in inflation during 1981-84, but that the gains against inflation due to the mix will likely be lost, or more than lost, in the future