The Re-Politicization of the Fed

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 1974
Volume: 9
Issue: 5
Pages: 743-752

Authors (1)

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper seeks to document some simple and not-so-simple facts. My thesis is that, to an unprecedented degree, Federal Reserve (F.R.) Board Chairman Arthur Burns has engaged himself and the System in political action. Burns' leadership has contributed to politicizing the monetary control process, the dialogue concerning the nature and effects of that process, and perhaps even F.R. decisions themselves. These tactics have reduced the Federal Reserve's power to resist external political influence, a power that Chairman McCabe “bled” for in 1951 and that over the next two decades Chairman Martin labored assiduously to consolidate. On the other hand, this behavior at least maintained and probably increased Burns' standing with President Nixon.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:9:y:1974:i:05:p:743-752_02
Journal Field
Finance
Author Count
1
Added to Database
2026-01-25