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Reagan’s Reform: Leading the American Economy out of Stagflation (Special Issue No.53, 2015)


By Zhu Taihui & Wei Jianing, Research Team on “Methodology of Reform”, Research Department of Macro-Economy of DRC

Research Report [Special Issue No.53 (Total 1456), 2015] 2015-12-25

Abstract: In view of the reform methodology, the success of former US President Ronald Reagan’s reform is ascribed to its effective strategies and tactics. As regards strategy, the Reagan administration successfully dealt with the relationship between government and market, government and people, central and local government, as well as democracy and the rule of law. As for tactics, prior to the reform a large-scale deliberation on reform-based theory was launched; at the initial stage of reform the government made an enhanced publicity of reform; the formation of reform plan was based on a legalized act; and the implementation of the reform was conducted in a well-managed technical manner. These measures contributed to the successful economic turnaround of the US economy, leading it out of the shadow of stagflation. People believed that Reagan’s economic policies brought about the longest economic expansion of the United States after the Second World War, which laid the foundation for the new economic boom in the 1990s. As a Chinese saying goes, “Using history as a mirror, one will learn the rule of rise and fall.” The experience drawn from Reagan’s reform could be used as reference for China’s future reform.

Key words: Reagan’ reform, democracy, rule of law, methodology