Try to compare the choice of American economic policy in traditional economic period, stagflation period and new economic period.

A: The three important periods of American economic development since the war were guided by three economic development models: traditional economy, economic stagflation and new economy, which produced completely different results.

(1) Economic Policy Choice in Traditional Economic Period

The traditional economic period is from the early postwar period to the late 1960s. The American economy basically operates according to the traditional economic development model, that is, using Phillips curve to "replace" inflation rate and unemployment rate, or exchanging higher inflation rate for lower unemployment rate; Or exchange a higher unemployment rate for a drop in the price level. Although the economic development speed of the United States was not as fast as that of Japan and the Federal Republic of Germany at that time, it was basically normal.

(2) The choice of economic policy in stagflation period.

From the early 1970s to 1983, the American economy entered the second period of development, marked by the interweaving of economic stagflation, high inflation rate and low economic growth rate, and the economic policy was in a dilemma. To solve the economic stagnation, we must adopt inflation methods, including expanding government expenditure, increasing currency circulation, lowering interest rates and artificially expanding the market, which will inevitably aggravate inflation; On the contrary, to control inflation, we must adopt austerity policies, including reducing government expenditure, reducing currency circulation, raising interest rates, and tightening credit. This will inevitably aggravate economic stagnation. Therefore, during this period, the American economy was running under extremely difficult circumstances, and the speed of economic development was extremely slow. From 65438 to 0983, the American economy entered a stagflation stage, characterized by low inflation rate and low economic growth rate.

(3) the choice of economic policy in the new economic period

In the early 1990s, the United States began to enter a new economic era characterized by high economic growth rate, low inflation rate and low unemployment rate, and chose neutral monetary policy to regulate economic development. Comparing the three periods of economic development, it is obvious that the new economic period is the best period of American economic development after the war.