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The Adminstration of Regulation Q - Review

At a time when market interest rates have soared to levels never before reached in this country, rates on deposits at banks and other financial institutions have been held much lower. The rate commercial banks charge on prime business loans has been 8 1/2 per cent since early last June. Mortgage and many other market interest rates are currently about as high. On the other hand, payment of interest is prohibited on demand deposits, and the maximum rates permitted on time and savings deposits vary between 4.50 and 7.50 per cent. The highest rate applies only to deposits in denominations of $100,000 or more maturing in a year or longer. 

research.stlouisfed.org/publications/review/1970/02/01/the-adminstration-of-regulation-q

Economic Slowdown and Stabilization Policy - Review

The pace of real economic activity remains sluggish, as the response to last year’s monetary and fiscal restraint continues. Despitc the slowdown in production and employment, the pace of inflation has not yet moderated significantly.

research.stlouisfed.org/.../review/1970/09/01/economic-slowdown-and-stabilization-policy

1970—Economy in Transition - Review

Inflation gradually intensified in this country from late 1964 to early 1970, and expectations of future inflation were progressively revised upward. The interruptions to output and the inequities caused by redistributions of wealth and income resulting from the inflation and inflationary expectations became a serious domestic economic problem.

research.stlouisfed.org/publications/review/1970/12/01/1970economy-in-transition

Anti-Inflation Process Continues - Review

The rate of inflation has accelerated since 1965, until in the past year overall prices have risen more than 5 per cent, Progress in reducing inflation has been very siow, both because the inflation was permitted to develop momentum from 1964 through 1968, and because a gradual approach has been applied in correcting it in 1969 and 1970.

research.stlouisfed.org/publications/review/1970/08/01/anti-inflation-process-continues

Monetary and Financial Developments - Review

The crucial problem for stabilization policy at this time is how to achieve the most tolerable trade-off between continued downward pressure on the rate of price increase and slack in economic activity. Excluding the effects of the automobile strike, total production is apparently increasing slightly, and a slow recovery seems in prospect. There is also evidence that the rate of price advance has begunto decelerate.

research.stlouisfed.org/publications/review/1970/11/01/monetary-and-financial-developments

The "Crowding Out" of Private Expenditures by Fiscal Policy Actions - Review

Fiscal policy — Federal Government spending and taxing programs was given the dominant role in economic stabilization efforts during the decade of the 1960’s. The income tax cut of 1964 was designed to accelerate time movement toward full employment after about three year’s of what was considered by some a rather slow rate of economic expansion following the recession of 1960-61. The income tax surcharge and a reduction in the rate of increase in Government spending were adopted in 1968 to curb the inflation of the last half of the 1960’s.

research.stlouisfed.org/.../01/the-crowding-out-of-private-expenditures-by-fiscal-policy-actions

Federal Open Market Committee Decisions in 1969—Year of Monetary Restraint - Review

Monetary actions in 1969 exerted a decidedly more restrictive effect on the future course of economic activity than in the previous two years. All of the major economic variables generally used as indicators of monetary ease or restraint evidenced the restrictive influence. In 1969 the growth rates of the money stock, defined as currency and demand deposits held by the nonbank public, and money more broadly defined to include time deposits, decreased markedly from the previous two years. Bank credit likewise showed a slower rate of increase. Interest rates rose rapidly during most of the year, reaching levels well above their averages in previous years.

research.stlouisfed.org/.../