Effect of Reagan's policies

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  • 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

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