ABSTRACT
As the US economy opened up, international economic phenomena began to play a more significant role in the evaluation of the domestic economy. Exports, which had averaged 3.9 percent of the gross national product between 1965 and 1969, doubled to 7.6 percent between 1978 and 1982. The economic policy recommendations of supply siders undoubtedly hinged on political rather than economic reasoning. The Economic Recovery Program (ERP) constituted an important break from the traditional Keynesian economic policy that had prevailed. The ERP constituted the basis of the proposal submitted to Congress by the Reagan administration in February 1981. The economic policy of the Reagan administration has undoubtedly been decisive in shaping the development of the US economy. The ERP anticipated the administration's intention to preserve the independence of the Federal Reserve, exchange information on the respective policy trends, and support the reserve's decision to gradually reduce the monetary supply.
