Working Paper: NBER ID: w1929
Authors: Frederic S. Mishkin
Abstract: This piper provides an overview of U.S. macroeconomic policy and \nperformance in the 1980s by first outlining the behavior of key economic \nvariables and then discussing the policies that have affected these \nvariables. After gaining some insight into the interaction between these \npolicies and macroeconomic performance, it then goes on to examine where \nmacro policy and the U.S. economy may be heading in the next several \nyears.
Keywords: macroeconomic policy; economic performance; inflation; interest rates; budget deficits
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Shift in monetary policy in October 1979 (E65) | Substantial increase in real interest rates (E43) |
| High budget deficits resulting from Reagan's fiscal policies (E65) | High real interest rates (E43) |
| High budget deficits (H69) | Strong dollar and current account deficits (F32) |
| Monetary policy changes (E52) | High real interest rates (E43) |