.90 Years In The U.s. Economy, Inflation And Unemployment

The U.S. ecOnOtn in l990s enoyed a recordbredeng exPansion.This exPansion was markd by StrOng economic growth with lowinflaton and unemPlOyInent. In orde tO find the reasons how and Whythe U.S. econOmy in l990s can be marked by such a remarkale featUr,ths paPer examines the twO-low phenomenon-----which means lowinflaton and low unemPl oymeho-----of the U. S. econOm in l 99 0 s.There are three main statements in this paPer.First, besides benefited frOm globaliZation and stable oil price, thedistinctively low inflation of the U.S. economy in l990s was achieved bythe aPpropriate policies in the period, inCinding moneop policy, fiscalpolicy and exchang rate policy.Second, the key reason why the U.S. UneInlOyInnt in l990s canfell even without sparking innation was that AInrica had cut down itsW in 1990s. The factrs whch caused the U.S. NAlRU declined inl 990s were technOlOgical revolutions, policies to increase access toeducaton and talning, and the growth of exPorts.' Third, virtUally, the unexPected decline in bOth the U.S. infiationand unemPloyment in l990s resulted from the inward movement of theshort-run PhilliPs curve. In l990s, ther were twO main factors leadingthe U.S. shortnm PhilliPs curve to move inWar: the decline of NAlRU;the "good shock ofaggrgat6 suPply", Which caused by stable oil priceand the strong dOllars.This paPer is organized into 5 partS.IntrOduction tells us the toPic and the basic strUctUre of this paPer.ChaPter 1, namd "inflation theOries and the inflation of the U.S.economy in l990s", analysed hOw and why the U.S. economy in l990scan realize the diWively low inflation.ChaPter 2, named ''uneInloyInent theories and the unemPlOyInenof the U.S. economy in l990s", analysed hOw and why the U.S. economyin l990s can realize the distinctively low unemPlOyment.ChaPter 3, named 'the phillips curve and the tw-low phenomenonof the U.S. economy in l990s", studied the shortrun Phillips curv andthe reason why the u.s. econOm can make itS innation andunemPloyYnent both declined in l990s.At last, the "erilightInent" sums uP the above and gives some goodsuggestions tO the China's eCOnDrny in the 2lst cemp.