Bill Clinton´s Economic Policy U.S. Economic Policy 1993-2001
|Author:||Bc. Martin Pospíšil|
|Year:||2006 - summer|
|Leaders:|| doc. Ing. Karel Půlpán CSc.
|Work type:|| Bachelors
|Awards and prizes:||B.A. with distinction from the Dean of the Faculty of Social Sciences for an excellent state-final examination performance and for an extraordinarily good bachelors diploma thesis.|
|Abstract:||This paper reviews U.S. economic policy during Bill Clinton’s Presidency between 1993 and 2000. It analyses how much the Clinton administration’s economic policy contributed to record-long economic expansion, in which GDP growth was unexpectedly strong, inflation and unemployment surprisingly low. Moreover, this period can be characterized with strong business investment and high productivity. The key factors for strong and healthy economic growth in the 1990s were the optimal mix of fiscal and monetary policy, competitive and stable financial sector, and lots of opportunities for investment. Clinton faced huge budget debt and proved that the economy can recover while the government reduces its budget deficit. All Clinton’s fiscal measures combined progressive redistribution and budget discipline. By the end of the 1990s, the budget had recorded its third consecutive unified surplus for the first time since 1947-49, as well as the largest surplus relative to GDP since 1948.
Deficit reduction was an important success; however, it brought about, as a side effect, some failures. Reform of Social Security and Medical Service was not successful. The finding of this thesis proves that a cooperation of fiscal and monetary policy is crucial.Clinton was supported by the Fed and its Chairman Alan Greenspan. Elimination of the budget deficit allowed Fed to lower interest rates, what was a motor to increased investments and further economic growth. Exceptional is economic stability of 1990s. Clinton-Greenspan mix of tight budgets and easier money contributed to the outstanding economic performance
|Downloadable:|| Bachelor Thesis of Martin Pospíšil