The Economic Legacy of the Reagan Years: Euphoria or Chaos?

The eight years of the Reagan administration have left an indelible imprint on U.S. economic policy. Although the term Reaganomics is employed by both the general public and academic economists, there is still no consensus as to what the overall impact of Reaganomics has been for the country. This work, a wide-ranging collection of essays and commentaries, analyzes the empirical evidence that comprises the Reagan economic legacy. By detailing that legacy’s successes, such as low unemployment and economic growth, and its negative effects, including unprecedented deficits and regulatory chaos, the editors provide some tentative conclusions as to whether the Reagan years produced an economic miracle or paved the way for economic disaster.

The volume concentrates on the first level of economic impacts, covering the issues of supply-side economics, the regulatory environment, monetary policy, and foreign trade. Under each topic, groups of essays and commentaries present alternative interpretations of the Reagan legacy. Tax policy and business fixed investment, the effects of supply-side policies on labor supply, tax reform and deregulation are addressed in the supply-side section; interest rates and monetary policy objectives and realizations comprise the monetary policy section; and trade policy, trade deficit, and exchange rates are discussed in the international trade section. A final essay offers an alternate view of the Reagan legacy that attempts to synthesize the divergent theories. This work will be an important new resource for courses in economics and political science, as well as a worthy addition to college, university, and public libraries.