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Stabilization Policy and Inflation - Review

The projected course of economic activity for this year is discussed in the 1969 Economic Report of the President, which was presented to Congress on January 16. The appended report of the outgoing Council of Economic Advisers projected total spending in the fourth quarter of 1969 to be 6 per cent above fourth quarter 1968. Though their estimate is labeled a forecast, it may be considered, more appropriately, a target or plan in the spirit of the Employment Act of 1946. To achieve this 6 per cent target growth in total demand, the outgoing Administration proposed a budget consisting of a 5.5 per cent increase in Federal spending in the year ending fourth quarter 1969, and continuation of the 10 per cent tax surcharge to mid-1970.

research.stlouisfed.org/publications/review/1969/02/01/stabilization-policy-and-inflation

Progress in Controlling Inflation - Review

Stopping the acceleration of price increases is currently the most important objective of national economic policy. The other major objective, “full employment” defined as an unemployment rate below 4 per cent, has been achieved since late 1965. The method that has been chosen to achieve stable prices is to curtail growth in total spending (GNP). Historically, a slowing of total spending has been accompanied by a slowing in the growth of real pmduct, followed by a slowing in the rate of increase in prices and by subsequent recovery in the growth rate of real product. Consequently, the question arises as to what is implied for the course of real product under the current anti-inflation policy.

research.stlouisfed.org/publications/review/1969/11/01/progress-in-controlling-inflation

Recent Interest Rate Developments - Review

Most market interest rates have risen in recent weeks after declining in late July and August and rising sharply earlier this year. This note traces the recent course of interest rates, discusses some causal forces affecting these movements, and comments on the outlook for interest rates.

research.stlouisfed.org/publications/review/1969/10/01/recent-interest-rate-developments

1969—Battle Against Inflation - Review

Nineteen sixty-nine has been the fifth year of intensifying inflation. Overall prices, after remaining fairly stable in the early Sixties, rose 1.7 per cent during 1965, 3.5 per cent a year in 1966 and 1967, 4.0 per cent during 1968, and an estimated 5 per cent in 1969. Not since World War II has the American economy experienced such a sustained price upsurge.

research.stlouisfed.org/publications/review/1969/12/01/1969151battle-against-inflation

A Historical Analysis of the Credit Crunch of 1966 - Review

In early 1966 the U.S. economy was entering the sixth year of continuous economic expansion. The unemployment rate was at 4 per cent, a level believed almost unattainable two or three years earlier, capacity utilization was close to 90 per cent, and firms were faced with an exceptionally large backlog of orders. The economy had not only reached a state of full employment, but there was every indication that the “boom” would continue. To many, it appeared that the “New Economics” had finally removed the danger of recession or economic slowdown.

research.stlouisfed.org/.../review/1969/09/01/a-historical-analysis-of-the-credit-crunch-of-1966