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Discusses the changes on the economy of the United States (US) since the passage of the bill Congressional Budget Act in 1974. Impacts of the inflation rate in the 1970s and 1980s on federal budget and tax expenditure policies; Shifts in the distribution of income; Changes in the budget and its components; Elements of fiscal policy from 1974-1999; Performance of the budget rules on the economic changes; Budget surplus reflections on US fiscal policy.

The U.S. terminated its Phase II price control program in January 1973 and shifted to the largely voluntary program of Phase Ill. In succeeding months price inflation soared to its highest rate since the Korean War. In retrospect the Phase III experience offers several lessons for economic policy. The poor price performance resulted from a sharp shift in the characteristics of the underlying inflationary pressures. The 1973 inflation would have been severe with a Phase II system of controls, Phase III, or without controls. As a result, the past year offers very little evidence for or against the use of an incomes policy as a counterinflationary tool. In the first half of 1973 the rate of inflation accelerated sharply. While the transition to Phase III may have contributed, the upward pressure on prices can be traced primarily to three areas, retail food prices exploded; the international economic situation changed significantly; and several basic materials industries encountered capacity shortages which put strong upward pressure on prices.

The article discusses the effects of trade regulations as it relate to inflation in the U.S. It provides an overview of inflation and the way regulation is part of such problem. It states that regulation of a social type is reducing productivity somewhere between five-tenths to three-quarters of a percentage point annually. It emphasizes that an improved social regulations could cut that cost in half. According to the author, inflation can be separated into three areas including the concept of momentum inflation, shocks to the economy and drop in productivity growth.

Comments on the role of antitrust immunities and anti-inflation problem. Problems in the economic system of the society; Nature of the inflation problem; Response of prices and wages to changes and demand in condition of the individual market; Role of labor unions in the negotiation process.

Presents a paper that examines several characteristics of the current inflation that differentiate it from the inflation that existed prior to the freeze of August 1971. Supply shortages in agriculture and a few other basic material industries; Effects of the second United States devaluation; Price increases in some industries; Need for the rises in industrial prices that are not justified by cost increases to stop.