Why Mundell Won The Nobel

For work that led to the euro, not for his supply-side theory

The core of the Reagan Revolution of the 1980s was the idea that cutting taxes would stimulate the economy by restoring people's incentives to work and invest. Big tax cuts, President Reagan argued, would actually increase government revenues in the long run. Reagan learned his supply-side economics from the likes of Jack Kemp, Jude Wanniski, and Arthur B. Laffer. They, in turn, took their inspiration from a Canadian-born economist at Columbia University named Robert A. Mundell.

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