April 18, 2023

The Biden administration is being quite aggressive in pursuing a fiscal policy that is diametrically opposed to the one espoused by the Reagan administration; a policy mix that has kept tax rates and regulations in check over the last four decades. Needless to say, if the Biden administration is successful in doing so, it will alter the direction of the economy. But will the administration be successful? Will the changes be temporary or permanent? If permanent, what are the paths open to pursue the BBB agenda? The Biden administration policies, if successful, will have a direct impact on the Reagan component of the Volker-Reagan policy mix while the Powell Fed has direct control of the monetary side, the Volker component of the Volker-Reagan Policy mix. Hence a permanent change in the Volker-Reagan policy mix requires the political success of the Biden administration combined with the full cooperation of Jay Powell’s Fed. But is this likely?

You must have an active account to view these reports. You may register for a trial here

Download Complete Report in PDF Format

Download Complete Report in Word Format