monetary policy a surge in the money supply accompanied the new fiscal policy.
With the shift in fiscal and monetary policies, the economy began to recover, and the economic recovery led to a Reagan victory in the 1984 presidential election. Supply side economics was seldom mentioned again, although the supply side goal of tax reduction continued to be pursued by the Reagan administration in its second term; a goal which was attained in the Tax Reform Act of 1986.
AN ASSESSMENT OF REAGANOMICS, AND SUPPLY SIDE THEORY IMPLEMENTATION
In the early years of the Reagan administration, the eco nomic policies implemented were referred to under the general term of Reaganomics. Supposedly, the emphasis in these poli cies would be on the stimulation of supply, as opposed to demand, and on the reduction of taxes. While some incentives were granted to producers, they had little stimulative effect in the early Reagan years, because the recession induced by t
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