The United States Economic Stagflation Problem And Foreign Trade Of1970-1980’s

During the Second World War, The United States is the only country that was not Invaded. On the contrary, The United States was profiting from the war. After World War Ⅱ, the United States became the world’s superpower no matter in the economic terms or political and military terms. It is in the such favorable internal and external situation that the economy of the United States developed extremely rapidly after the second world war, entering into "the Golden Time". However, under the such great situation, the strength of the United States was quietly fading. Due to the deterioration of efficiency, the productivity changed from rise to decline, what’s more, the growth of wage and welfare improvement were continuously faster than the raise of labor productivity, the bad situation lasted until the early80’s of twentieth century, finally, the America’s economy had experienced serious inflation, and inflation rate once rose to two digits. When inflation and economy intertwined, which led to be unprecedented economic stagflation in history. In the stagflation, The United States has long implemented macroeconomic policy failure.In order to deal with the crisis, there had been four government, that’s, Nixon、Ford、 Carter and Reagan fought against it. The first three government can not make America get rid of the stagflation, while Reagan government reflected inflation and economy policies as well as others problems, and drew the economy lessons of more than30years after the second Word War II, which made Reagan government form some new dears, what’s more, Reagan government began to adjust economic policies in the1980s comprehensively and took active measures to against stagflation, America got rid of the stagflation and controlled the inflation basically in the mid1980s. The measures of Reagan government was also called "Reagan economics". At present, our country’s economy still maintain a fast growth, and the phenomenon of economic stagflation has not appeared so far, but the inflation is rather serious, so what Reagan government had done is worth studying for our country.