Is the Inflation Reduction Act Effective? A Forward-Looking Review of the IRA

Abstract

This paper conducts an in-depth examination of the Inflation Reduction Act (IRA), significant legislation aimed at addressing a series of critical economic and climate issues in the United States. It introduces the concept of inflation and discusses the key provisions of the IRA across four major areas: climate change, energy security, prescription drug prices, and tax reforms. Additionally, the paper analyzes the Act’s overall impact on inflation separately, providing a comprehensive review of its effectiveness. The study evaluates the IRA through an analysis of economic data and news reports, considering the policy’s broader implications and offering suggestions for future research.