More on Ford, or "Price Stability is Job 1"
In the econo-blogo-sphere, discussion of President Ford's tenure has focused on Federal Reserve Chairman Arthur Burns. Macroblog attempts a defense of Burns; who Econbrowser finds indefensible.
Burns' reputation will not be helped by new evidence from the Nixon tapes indicating he may have had a political motive for an overly-expansionary monetary policy -
October 10, 1971, Nixon to Burns: “I don’t want to go out of town fast…. This will be the last conservative administration in Washington.”
December 10, 1971, Burns to Nixon: “I wanted you to know that we lowered the discount rate… got it down to 4.5%... [I] put them [FOMC] on notice through this action that I want more aggressive steps taken by that committee on next Tuesday”
Nixon to Burns: “Great. Great, you can lead ‘em. You can lead ‘em. You always have, now. Just kick ‘em in the rump a little.”
Source: Burton A. Abrams: “How Richard Nixon Pressured Arthur Burns: Evidence from the Nixon Tapes” Journal of Economic Perspectives, Fall 2006
Central bank independence, indeed!
Burns' reputation will not be helped by new evidence from the Nixon tapes indicating he may have had a political motive for an overly-expansionary monetary policy -
October 10, 1971, Nixon to Burns: “I don’t want to go out of town fast…. This will be the last conservative administration in Washington.”
December 10, 1971, Burns to Nixon: “I wanted you to know that we lowered the discount rate… got it down to 4.5%... [I] put them [FOMC] on notice through this action that I want more aggressive steps taken by that committee on next Tuesday”
Nixon to Burns: “Great. Great, you can lead ‘em. You can lead ‘em. You always have, now. Just kick ‘em in the rump a little.”
Source: Burton A. Abrams: “How Richard Nixon Pressured Arthur Burns: Evidence from the Nixon Tapes” Journal of Economic Perspectives, Fall 2006
Central bank independence, indeed!
posted by Bill C at 7:22 PM
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