ABSTRACT
Reducing the burden of taxation and regulation and slowing the growth of government spending and credit are essential steps to achieving stronger economic performance. The primary credit for less inflation should be given to the Federal Reserve and its monetary policy, which the Reagan administration consistently supported. It has been clearly demonstrated that many participants in financial markets are close students of the federal budget and especially of reports of future deficits. The progress in slowing down the current inflation began before the recession and thus is likely to continue during the recovery that follows, as the policy of moderate monetary growth is maintained. People must be aware of—and sensitive to—charges that the Reagan administration has been backtracking on some of the regulatory gains that were achieved in recent years. Some of the developments that might interpret as setbacks can be viewed as temporary holding points, pending legislative developments, or a stronger economy.
