Word: money
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Dates: during 1960-1969
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...general monetary matters, Burns seems sympathetic to Conservative Economist Milton Friedman's theory that the Federal Reserve should expand the money supply at a fairly steady rate of 2% to 6% a year, depending on economic conditions. Friedman often debates economic policy with Burns on holidays in Vermont, where the two economists have vacation homes next to each other. Not surprisingly, Friedman hailed Burns' appointment as "splendid." Friedman admits, however, that "Arthur takes a long time to make decisions, and once he has made them, it is very difficult to get him to change his mind." Economist Raymond...
...contrast, Bill Martin over the years has been much more worried about the perils of recession. Martin's real hallmark at the Federal Reserve was a willingness to switch from easy-to tight-money policies and back again as he thought the situation required. He cooperated with the expansionist policies of President Kennedy when the nation's economic problem was sluggish growth and persistent unemployment. In late 1965, however, he refused to accept Lyndon Johnson's line that the U.S. could escalate the Viet Nam war, keep taxes and interest rates down and still avoid inflation...
Impetus to Inflation. Toward the end of Martin's tenure, the Federal Reserve became rather too flexible. Between late 1966 and mid-1967, for example, it swung from expanding the money supply at a 1% annual rate to letting it grow at a 13.5% annual rate, then tightened it again. The last loosening occurred in the summer of 1968, and Martin now admits that it was a mistake that gave a fresh impetus to inflation...
...continue to have Nixon's ear. But there is some doubt in Washington about what will happen when the President decides that the time has come to switch from anti-inflation to antirecession policies-and quietly calls on the Chairman of the Federal Reserve to ease up on money. At that time, will Nixon have the ear of strong-willed Arthur Burns...
...essentially designed to keep fares on U.S. liners competitive with Greek, Panamanian and other foreign-flag ships by offsetting the wage differential between U.S. and foreign seamen. The rationale has been that U.S. citizens sailing on American ships help narrow the balance of payments deficit by spending their ticket money with domestic instead of foreign companies. It is doubtful, however, that the balance of payments gains are worth spending so much taxpayers' money in the form of subsidies...