ABSTRACT
Americans learned a very costly lesson from the failed Keynesian fiscal and monetary policies of the 1960s and 1970s: Long-run prosperity cannot be ensured by government interference in the economy. Moreover, attempts by the Federal Reserve to manage the supply of money to accommodate a particular rate of gross domestic product (GDP) growth are destined to fail. What the 1980s amply demonstrated was that a sound monetary policy and reduced government regulations could yield strong growth, with low inflation and a rising standard of living for all.
