ECLECTICS:WHAT DID WE LEARN FROM KEYNES?PART 15

The Lyndon Johnson era of 1960s ended with demandpull inflation splurged on unchecked.The period of 1970s was not spared either of the phenomenal inflationforces of the succeeding period.Did Nixon like Johnson impose a tax increase or fear economic slowdown as a conservative to oppose increase in the role of government through taxation?However,he did attempt two options such as the restraint in the amount of money supply from the printing press and the 90day price and wage freeze.The first could not guarrantee optimal effect and as unemployment escalated,public protest grew.Subject to recommendation by some economists to use succesful wartime economic measure at peacetime to curb inflation that was never used before in peacetime,Nixon responded with the 9Oday freeze policy.It failed and people still didnt alter their inflation expectations.The stagflation era of 1970s challenged the fundamental orthodoxies of the preceding period.Stagflation had been defined as a combination of stagnant economic growth,high