Nixon and Arthur Burns Discuss "Goosing" the Economy
It's good to know
people in high places.
The Federal Reserve System is designed by law to insulate monetary policy from political pressures. This statutory independence frustrated Nixon during his first term when the economy showed the first signs of “stagflation” — high unemployment and inflation. Meeting with Federal Reserve Chairman Arthur Burns in the privacy of the Oval Office, Nixon told his conservative appointee that if he was not reelected, his replacement would be a liberal who would go “hog wild.” When Nixon expressed the hope that the Gross National Product would rise, Burns made a most welcome campaign pledge.
(Thanks PVC)
