A Monetary and Fiscal History of the United States, 1961-2021

by Alan S. Blinder

Overview

From the New York Times bestselling author, the fascinating story of U.S. economic policy from Kennedy to Biden—filled with lessons for today

In this book, Alan Blinder, one of the world’s most influential economists and one of the field’s best writers, draws on his deep firsthand experience to provide an authoritative account of sixty years of monetary and fiscal policy in the United States. Spanning twelve presidents, from John F. Kennedy to Joe Biden, and eight Federal Reserve chairs, from William McChesney Martin to Jerome Powell, this is an insider’s story of macroeconomic policy that hasn’t been told before—one that is a pleasure to read, and as interesting as it is important.

Focusing on the most significant developments and long-term changes, Blinder traces the highs and lows of monetary and fiscal policy, which have by turns cooperated and clashed through many recessions and several long booms over the past six decades. From the fiscal policy of Kennedy’s New Frontier to Biden’s responses to the pandemic, the book takes readers through the stagflation of the 1970s, the conquest of inflation under Jimmy Carter and Paul Volcker, the rise of Reaganomics, and the bubbles of the 2000s before bringing the story up through recent events—including the financial crisis, the Great Recession, and monetary policy during COVID-19.

A lively and concise narrative that is sure to become a classic, A Monetary and Fiscal History of the United States, 1961–2021 is filled with vital lessons for anyone who wants to better understand where the economy has been—and where it might be headed.

Product Details

ISBN-13:	9780691238401
Publisher:	Princeton University Press
Publication date:	04/16/2024
Pages:	440
Sales rank:	148,119
Product dimensions:	7.90(w) x 5.20(h) x 1.20(d)

About the Author

Alan S. Blinder is the Gordon S. Rentschler Memorial Professor of Economics and Public Affairs at Princeton University, a former vice chair of the Federal Reserve Board, and a former member of the President’s Council of Economic Advisers. A regular columnist for the Wall Street Journal, he is the author of many books, including the New York Times bestseller After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead. He lives in Princeton, New Jersey.

Table of Contents

Introduction 1

1 Fiscal Policy on the New Frontier 7

2 Inflation and the Rise of Monetarism 27

3 The Phillips Curve Becomes Vertical 45

4 Nixon, Burns, and the Political Business Cycle 59

5 Stagflation and Its Aftermath 75

6 Inflation and the Rational Expectations Revolution 94

7 Carter, Vblcker, and the Conquest of Inflation 109

8 Reaganomics and the Clash between Monetary and Fiscal Policy 133

9 The Long Expansion of the 1980s 152

10 Deficits Crowd Out Fiscal Policy, 1982-1998 173

11 The Long Boom of the 1990s 198

12 The 2000s: The Job-Loss Recovery and the Bubbles 227

13 The Financial Crisis and the Great Recession 246

14 All Together Now: The Fed and the Treasury Join Hands 268

15 The Aftermath and the Backlash 294

16 The Record Expansion of the 2010s 312

17 Trumponomics before the Pandemic 330

18 Responding to the Great Pandemic 344

19 Sixty Years of Monetary and Fiscal Policy: What's Changed? 369

References 393

Index 415

What People are Saying About This

From the Publisher

“In his deft narrative of the last sixty years of American macroeconomic history, Alan Blinder reveals the various fiscal and monetary levers that policymakers can pull to try to influence the economy—and explores how things did or didn’t work out for those doing the pulling. This is a fascinating and important read for anyone who wants to better understand our economic past, present, and future.”—President Bill Clinton

“Alan Blinder is one of the clearest and most engaging writers on economics we have.”—Ben Bernanke, Nobel Prize–winning economist and former Chair of the U.S. Federal Reserve

“Alan Blinder’s extremely engaging history of the last sixty years of fiscal and monetary policy is an absolute must-read. It powerfully highlights the complex interactions between economic ideas, events, policy, and politics. Blinder’s historical insights can—and should—serve an important function in improving policy effectiveness and minimizing mistakes in today’s more uncertain and unsettled world.”—Mohamed A. El-Erian, New York Times bestselling author of The Only Game in Town and When Markets Collide

“This is the definitive history of post-1960 monetary and fiscal policy. The book crackles with artful turns of phrase and deftly weaves policy episodes with a lively account of the evolution of monetary and fiscal theory. It also includes fascinating short biographies of some of the main protagonists, including policymakers and economists.”—Robert J. Gordon, New York Times bestselling author of The Rise and Fall of American Growth

“Alan Blinder’s history of modern U.S. monetary and fiscal policy is a delightful blend of economic history, the history of economic doctrine, economic analysis, and personal insights from an inside player. Blinder’s deep knowledge and discernment are amplified by his acerbic sense of humor.”—Michael D. Bordo, author of The Historical Performance of the Federal Reserve

Editorial Reviews

"Essential."

Choice

"Finalist for the PROSE Award in Economics, Association of American Publishers"

"A Choice Outstanding Academic Title of the Year"

From the Publisher