Quick, Jon Chait, which raving supply-side moon-bat wrote this today?
“In the past 50 years, there have been two macroeconomic policy changes in the United States that have really mattered. One of these was the supply-side reduction in marginal tax rates, initiated after Ronald Reagan was elected president in 1980 and continued and extended during the current administration. The other was the advent of “inflation targeting,” which is the term I prefer for a monetary policy focused on inflation-control to the exclusion of other objectives. As a result of these changes, steady GDP growth, low unemployment rates and low inflation rates — once thought to be an impossible combination — have been a reality in the U.S. for more than 20 years.”
Yes, of course, it was that frothing fringe dodo named Robert E. Lucas, Jr., winner of the 1995 Nobel Prize.
(See my review of Jonathan Chait’s book The Big Con here: http://www.disco-tech.org/2007/09/the_big_boom.html.)