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American Economic Policy and the World Economy

By Martin Feldstein
Summer 1985
Article Summary and Author Biography

During the past few years, the American economy has demonstrated impressive resiliency and America's economic performance has improved substantially. Inflation has dropped from 13 percent to four percent. The rise in unemployment that was an inevitable consequence of the accelerating inflation of the late 1970s has retreated to just a fraction over seven percent. And real GNP has increased more than 12 percent in the two years since the recovery began.

Martin Feldstein is the George F. Baker Professor of Economics at Harvard University and the President and Chief Executive Officer of the National Bureau of Economic Research. From 1982 to 1984 he served as Chairman of the Council of Economic Advisers and President Reagan’s chief economic adviser. This article is adapted from remarks to The Trilateral Commission meeting in Tokyo, April 1985.

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