Volume 30, Number 13 · August 18, 1983
Time for a Change
By Felix G. Rohatyn
The economic recovery now under way appears to have increasing strength and momentum. The stock market has moved up dramatically, interest rates have come down significantly, consumer spending is up, inflation is down, production is growing. That is welcome news to everyone. There are two possible explanations for this recovery. One is that supply-side economics works and that the Reagan tax and budget programs enacted in 1981, together with monetarism, are producing long-term economic growth with low inflation and high investment. The other is that we are experiencing a normal, or slightly subnormal, cyclical rebound after a steep recession, stimulated by consumer spending, high deficits, and easy money—in short, a classical Keynesian recovery.
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