| Abstract: | The US budget deficit, and the higher interest rates it is said to cause, is blamed for depressing the economies of Europe. A former Assistant Secretary to the Treasury, now Professor of Economics at Georgetown University, challenges the view that it is the result of President Reagan's tax cuts and defence build-up. In a broadly 'supply-side' analysis, he criticises Paul Volcker, Chairman of the Federal Reserve Bank, David Stockman, Director of the Office of Management and Budget, and Professor Martin Feldstein, Chairman (until June) of Council of Economic Advisors. |
