From the Economist’s DIA blog.
Republicanomics – a vulgar, acontextual cartoon of Reagonomics.
They explain:
“Reagan met the specific challenges of the American economy in the early 1980s through tax cuts and tight money, among other things. Republicanomics transformed the policies of the Reagan administrations and the Volcker/Greenspan Fed into hardened ideology. “Reagan’s embrace of a tight monetary policy in a high-inflation environment had hardened into a dogmatic insistence on tight money and anti-inflationary policies all the time,” Mr Rauch writes. And thus:
At a time when most economists saw deflation and long-term, Japanese-style stagnation as a far greater danger than inflation, and when high unemployment and below-target inflation indicated that monetary policy was too tight, Republicans were hyperventilating about “currency debasement” and denouncing the Fed’s efforts to expand the money supply.”
