How did President Carter try to revive the economy?
1 Answer
Jul 2, 2016
He emphasized Keynesian economics which means reviving the economy by fuelling the demand rather than the supply.
Explanation:
President Carter had two phases in his economic policy, the second one being more economically liberal than the first one.
During the Seventies the economies of the Western World were struck by both inflation and unemployement, an exceptional circumstance which had been unforecast by the main economic thought of the previous decades-Keynesian economics.
Keynesian economics was Carter's main inspiration at a time when it started to be contested with alternative schools of thought embodied by Friedrich Hayek and Milton Friedman.
The second phase was triggered by the failure of the first one to restrain inflation.
