Edward Nelson
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9780198704324
- eISBN:
- 9780191773761
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198704324.003.0018
- Subject:
- Economics and Finance, Economic History, Macro- and Monetary Economics
This chapter studies Friedman’s commentaries on and interactions with Arthur Burns and G. William Miller, who were at the helm of the Federal Reserve during the 1970s. Friedman could claim to have ...
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This chapter studies Friedman’s commentaries on and interactions with Arthur Burns and G. William Miller, who were at the helm of the Federal Reserve during the 1970s. Friedman could claim to have made only limited headway in getting his views accepted by these policymakers. Both Chairmen Burns and Miller in the 1970s rejected Friedman’s view that monetary policy actions could by themselves control inflation. On the issue of the appropriate operating procedures for monetary policy, Friedman expressed hope at various times that Burns or Miller would shift from a federal funds rate instrument to a bank reserves-type instrument, and he was disappointed in each case by the resilience of the Federal Reserve’s attachment to a federal-funds-rate-oriented operating procedure.Less
This chapter studies Friedman’s commentaries on and interactions with Arthur Burns and G. William Miller, who were at the helm of the Federal Reserve during the 1970s. Friedman could claim to have made only limited headway in getting his views accepted by these policymakers. Both Chairmen Burns and Miller in the 1970s rejected Friedman’s view that monetary policy actions could by themselves control inflation. On the issue of the appropriate operating procedures for monetary policy, Friedman expressed hope at various times that Burns or Miller would shift from a federal funds rate instrument to a bank reserves-type instrument, and he was disappointed in each case by the resilience of the Federal Reserve’s attachment to a federal-funds-rate-oriented operating procedure.
