It sees the domestic interest rate as set by the global one, as set forth in a model of the open economy by Marcus Fleming.
It sees the domestic interest rate as set by the global one, as set forth in a model of the open economy by Marcus Fleming. It supports the gold standard and emphasizes value over quantity. Criticized by Paul Krugman, it claims lineage to classical economics, and especially Say's law. Described in the book The Way the World Works by Jude Wanniski, who is credited with coining this term, it emphasizes the growth of firms as an incentive as opposed to money supply and monetarism. Blaming stagflation on Keynesian economics, FTP name this economic theory based on the possible increase in tax revenue associated with tax cuts, as codified in the Laffer curve, sometimes called Reaganomics.
It sees the domestic interest rate as set by the global one, as set forth in a model of the open economy by Marcus Fleming.
{supply-side} economics