 US SenatorsChapter 16 in Ideology and the International Economy, 2003, pp 117-124 from Palgrave Macmillan Abstract: Abstract Although he resisted formal Washington entanglements, Friedman was a highly political economist. Prior to the Nixon Presidency, his political influence was primarily exerted through informal channels. For example, in late January or early February 1951, he and six other Chicago economists issued a statement on ‘The Failure of the Present Monetary Policy’ (Friedman et al. 1951). The statement was sent to Senator Paul Douglas (1951, 1479, 1470) who read it to the Senate Congressional Record (22 February 1951). Douglas suggested that ‘Next to the questions of foreign policy and defense, the threat of inflation is perhaps the most serious one which we face.’ Douglas noted that the Fed was obliged to adopt an expansionary monetary policy to accommodate the Treasury’s desire to keep interest rates low so as to keep at a minimum the cost of government borrowings. Douglas suggested that the Fed should restrain the rate of growth of the money supply. On 2 March 1951, the Fed and the Treasury reached an ‘accord’ (Tavlas 1977). Keywords: Exchange Rate; Monetary Policy; Money Supply; Flexible Exchange Rate; Float Exchange Rate (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-28602-3_16 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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