Abstract
By the early 1980s, the macroeconomic landscape had changed significantly for the United States and several other Western European economies. Once-successful Keynesian discretionary demand-side stabilization policies appeared to be ineffective. The output-inflation tradeoff seemed to be no longer in evidence—expansionary fiscal and monetary stimuli only yielded additional inflation with no accompanying increase in GDP growth or employment. The Phillips curve, for all intents and purposes, appeared to be dead.
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© 2009 Springer Science+Business Media, LLC
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Langdana, F.K. (2009). The Supply-Side Model and the New Economy. In: Macroeconomic Policy. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-77666-8_10
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DOI: https://doi.org/10.1007/978-0-387-77666-8_10
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-387-77665-1
Online ISBN: 978-0-387-77666-8
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