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This chapter examines the economic policy of the Nixon administration. The good years of economic management in the United States ended with the Vietnam war. Wartime spending and resulting demand put pressure on prices. In later years the economists of the Nixon administration attributed the increasingly serious inflation to the fiscal disorder they had inherited. However, the fiscal position inherited by the Nixon administration was remarkably sound, while the price movements were not especially alarming. The chapter considers Richard M. Nixon's anti-inflation policies, focusing on his initial decision to freeze all wages and prices, with the exception of farm prices and a few others, as well as his liberalization of the budget and reduce taxes. It also discusses the effect of monetary policy on price increases and unemployment.
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