- Created by: eves_mck
- Created on: 12-02-19 21:18
Reagan's policies of taxt cuts and money supply control : stop inflation, reduce unemployment, increase personal wealth, increase productivity, encourage personal savings and investing.
Did Reagan's policies stop inflation and unemployment?
- While passing ORA and ERTA - put pressure on Federal Reserve Board to tighten restrictions on money supply
- Tightened more than White House asked for
- Reagan's adminsitration didnt ask FRB to lift restrictions when unemployent rose
- Supply restriction led to a sharp rise in interest rates
- Hurt industries who had to buy supplies on credit or had long payback period loands
- Depression deepened under Reagan