`INDEX`

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A. H. Robins, 24
Ackley, Gardner, 2
Aliber, Robert, 1, 15, 65
Allied powers, 100
American Economic Association, 15
American Recovery and Reinvestment Act, 71

bailouts
of Penn Central, 17
of Wall Street, 62
Banking, Housing, and Urban Affairs Committee, 66
Belgrade, 50
Black (Justice), 6
Boskin, Michael, 58f
Bretton Woods Agreement, 35
history of, 99–100
Brezhnev, Leonid, 30–31
Budget Act of 1974, 86
budgets
cuts in, 84
in economic strategy, 84–86
off-budget financing, 85
Burns, Arthur, 15, 23f, 31, 46–48, 65
on GDP, 48–49
on inflation, 20, 73–74, 77–78
Nixon and, 48, 73–79
on Penn Central, 17–18
Shultz on, 19f
on trade unionism, 74–75
on wage and price controls, 20–21, 66
on welfare programs, 75
Bush, George H. W., 70
Council of Economic Advisers and, 58f
tax code reforms under, 57–58
Bush, George W.
on Keynesianism, 60
tax cuts under, 60
Taylor and, 61f
business cycle, 20–21
Byrd, Harry, 24

Cabinet Room, 52f
Camp David, 23f, 35
Carter, Jimmy, 44
on consumer credit, 50
on inflation, 69
centralization, 12–13
Chase Manhattan, 39
Cheney, Dick, 27, 55
classical economic policy, 99
Clinton, Bill
on government, 70
stimulus under, 59
compliance measures, 5
Connally, John, 23f, 25, 55, 66
constant growth rate rule, 102
consumer credit
Carter on, 50
controls on, 50
consumer price index (CPI), 25, 42, 44, 46
controls. See wage and price controls
Coordinating Committee on Economic Policy, 56–57, 69
action of, 91
on energy, 88–89
on monetary policy, 89–90
on oil price controls, 88
of Reagan, 81–93
recommendations of, 85–86
on regulations, 45, 87
on regulatory reforms, 87–88
Shultz at, 45
signatures of, 94f
steady course maintained by, 91–92
on tax policy, 85–86
Cost of Living Council, 25, 67
Council of Economic Advisers, 6, 23f, 52f
Bush, G. H. W., and, 58f
public opinion and, 13
Council on Wage and Price Stability, 69, 88
elimination of, 45
passage of, 68
CPI. See consumer price index

deficit spending, 100
deflation, 61–62
Dent, Frederick, on wage and price controls, 29
Department of Defense, 17
Department of Energy, 89
depreciation, 86–87
Diocletian, 95
disinflation, 51f
Dole, Bob, 59
dollar, US
credibility of, 90
overvaluation of, 35
price controls of, 37–38
Dunlop, John, 2, 55, 67, 68

Economic Club of Chicago, 66
Economic Growth and Tax Relief Reconciliation Act of 2001, 70
Economic Policy Board, 91
Economic Recovery Tax Act of 1981, 69
Economic Report of the President, 12, 33–34, 95–96
Economic Stabilization Act, 22–23, 68
passage of, 65
Economic Stimulus Act of 2008, 70–71
economic strategy
budgets in, 84–86
coherence in, 83
consistency in, 83
guiding principles of, 82–84
initiative in, 84
long-term, 84
problems faced by, 83
public opinion and, 84
of Reagan, 81–93
steady course in, 91–92
tax policy and, 86–87
Eisenhower, Dwight, 17
employment, full, 8. See also unemployment
energy, Coordinating Committee on Economic Policy on, 88–89
Energy Policy and Conservation Act, 68–69
Euro-dollar market, 41
Executive Branch, 91

Federal Energy Administration, 68–69
Federal Energy Office, 42
federal funds rate, 45–46
Taylor rule and, 51f
Federal Regulatory Agency, 46f
Federal Reserve, 20, 45–46
Friedman on, 40
Greenspan at, 59
independence of, 90
on interest rates, 59, 61
monetary policy of, 62
transparency at, 59
Volcker at, 55–56
First Principles: Five Keys to Restoring America’s Prosperity (Taylor), 62
fixed exchange rates, 37, 39
breakdown of, 100
Rockefeller on, 40–41
floating exchange rates, 37, 100
Ford, Gerald, 31, 32f, 68, 98–99
recession during presidency of, 44
Francis, Darryl, 47
free market
gold window and, 37–38
wage and price guideposts and, 11–12
Friedman, Milton, 7f, 32, 36f, 96
on Federal Reserve, 40
on Great Inflation, 49–50
on inflation, 2–7, 15–16
on international economic policy, 39–40
on Phillips curve, 97
on Reagan, 49–50, 53
on recessions, 43–44
Shultz and, 37–40
Solow and, 13–15
Taylor and, 47–53, 57–58
on Volcker, 49–50
on voluntary controls, 5–6
on wage and price controls, 41
on wage and price guideposts, 3–7
on wage-price freeze, 38
full employment, 8

GDP. See gross domestic product
The General Theory (Keynes), 99
Gingrich, Newt, 59
global financial crisis of 2007–09, 62
gold window, 27
free market and, 37–38
Nixon on, 35–38, 100
Great Inflation, 47, 102
end of, 49–50
Friedman on, 49–50
Great Recession, 102
Great Society, 1
Greenspan, Alan, 33
at Federal Reserve, 59
on price stability, 59
gross domestic product (GDP)
Burns on, 48–49
growth of, 34f
guidelines. See wage and price guideposts
Guidelines, Informal Controls, and the Market Place, 2, 65
guideposts. See wage and price guideposts

Harlow, Bryce, 18
Hartley, Fred, 41
Hicks, John, 99
Holton, Linwood, 23
Hoover Archives, 20
Hoover Institution, 57
housing market, 60
bubble, 62
Hubbard, Glenn, 60

incomes policy, defining, 95–96
inflation, 1. See also Great Inflation
Burns on, 20, 73–74, 77–78
Carter on, 69
deceleration of, 69
decision-making and, 76
Friedman on, 2–7, 15–16
market power and, 10
monetarism and, 101
as monetary phenomenon, 2–3
monetary policy and, 59
open, 3–7
persistence of, 76
Phillips curve and, 97
premature, 11
under Reagan, 50
recession and, 47
Solow on, 8
suppressed, 3–7
unemployment and, 9, 74, 78
wage and price controls and, 18–19
wage-price freeze and, 38
interest rates, 41, 51
Federal Reserve on, 59, 61
Taylor rule and, 51f
international economic policy, Friedman on, 39–40
International Monetary Fund, establishment of, 100
interventionism, 62, 63
Iranian Revolution, 45
Iran-Iraq War, 89

Jobs and Growth Tax Relief Reconciliation Act, 70
Johnson, Lyndon, 1, 41–42
Joint Economic Committee, 39, 65–66, 100

Kemp, Jack, 52f
Kemp-Roth cuts, 86
Kennedy, John F., 1, 41–42
Keynesianism, 48
Bush, G. W., on, 60
defining, 99

Laffer, Arthur, 52f
Laidler, David, 36f
Landrum-Griffin Act, Burns on, 75
leadership, 92–93
Lynn, James T., 52f

marginal tax rates
under Reagan, 56
reduction of, 56
market power
defining, 97–98
inflation and, 10
Solow on, 10, 98
Marriott, J. Willard, on wage and price controls, 27–29
McCracken, Paul, 23f, 66
McGraw-Hill survey, 9
Meltzer, Allan, 2
Miller, G. William, 49
monetarism, 47–48
inflation and, 101
strict, 101
monetary growth, 89–90
monetary policy
Coordinating Committee on Economic Policy on, 89–90
of Federal Reserve, 62
inflation and, 59
in 2000s, 61

NAFTA (North American Free Trade Agreement), 59
National Bureau of Economic Research, 20
National Security Council, 91
Natural Gas Policy Act of 1978, 89
New Economic Program, 35, 66–67
Nixon, Richard, 23f
Brezhnev and, 30–31
Burns and, 48, 73–79
on gold window, 35–38, 100
New Economic Policy of, 66
Shultz and, 30–31
on wage and price controls, 18–19, 30, 33f, 42, 55
wage-price freeze of, 18–19
North American Free Trade Agreement (NAFTA), 59

Obama, Barack, 62, 71
off-budget financing, 85
Office of Management and Budget, 66, 85
oil price controls, 40, 69
Coordinating Committee on Economic Policy on, 88
Omnibus Budget Reconciliation Act, 70
open inflation, 3–7

Packard, David, 17
Pay Board, 24, 96
abolition of, 30
Penn Central
bailout of, 17
Burns on, 17–18
Shultz on, 18
Pentagon, 17
Peterson, Peter, 66
Phillips, A. W., 97
Phillips curve, 15, 48
defining, 97
Friedman on, 97
inflation and, 97
unemployment and, 97
premature inflation, 11
Price Commission, 24, 96
abolition of, 30
price controls. See wage and price controls
price guideposts. See wage and price guideposts
price setting, 1
price stability, Greenspan on, 59
public opinion, 12
Council of Economic Advisers and, 13
economic strategy and, 84
of Reagan, 50
public sector, trade unionism in, 74–75

Quadriad, 73
quantitative easing, 62
quantity theory of money, 101

rationing, 42–43
Reagan, Ronald, 44f, 64
Coordinating Committee on Economic Policy of, 81–93
economic strategy of, 81–93
Friedman on, 49–50, 53
inflation under, 50
marginal tax rates under, 56
public opinion ratings of, 50
recession during presidency of, 44–45
Shultz and, 69, 81–93
tax cuts under, 69–70
Volcker on, 46
recessions
Friedman on, 43–44
Great Recession, 102
inflation and, 47
Reagan and, 44–45
Regulation Q, 41–42
regulatory reforms, 87–88
Reynolds, Richard, Jr., 24
Reynolds Metal Company, 24
Rivlin, Alice, 59
Robins, Claiborne, 24
Rockefeller, David, 39
on fixed exchange rates, 40–41
Rumsfeld, Donald, 27, 31, 55, 67

Safire, Bill, 31, 66
Samuelson, Paul A., 15
saving, 21
Schmalensee, Richard, 58f
Schmidt, Helmut, 17
Senate Banking Committee, 68
Shultz, George, 1, 15, 23f, 27, 36f, 52f
Burns and, 19f
at Coordinating Committee on Economic Policy, 45
Friedman and, 37–40
Nixon and, 30–31
on Penn Central, 18
Reagan and, 69, 81–93
“Steady As You Go” speech of, 17, 66
on wage and price controls, 65
Simon, Bill, 42–43
Smithsonian Agreement, 27
Social Security, 60
Solow, Robert, 2, 14f
Friedman and, 13–15
on guideposts, 8–14
on inflation, 8
on market power, 10, 98
on unemployment, 15
on wage and price guideposts, 8–14, 16
Soviet Union, 30–31
Spong, William, Jr., 22
Stanford, 57
“Steady As You Go” speech (Shultz), 18, 66
Stein, Herb, 30, 66
Stigler, George, 2
stimulus, 62, 70
under Clinton, 59
stock market, wage-price freeze and, 22
strict monetarists, 101
suppressed inflation, 3–7
Synthetic Fuels Corporation, 89

tax code reforms, 45
under Bush, G. H. W., 57–58
tax cuts
under Bush, G. W., 60
under Reagan, 69–70
Taylor on, 62
tax policy
Coordinating Committee on Economic Policy on, 85–86
economic strategy and, 86–87
tax rebates, 68–71
Tax Reform Act, 56, 70
tax-based incomes policies (TIPs), 96
Taylor, John, 15, 32f, 33, 36f, 58f, 70
Bush, G. W., and, 61f
Friedman and, 47–53, 57–58
on tax cuts, 62
at Treasury, US, 60
Taylor rule, 63
defining, 101–2
federal funds rate and, 51f
interest rates and, 51f
TIPs (tax-based incomes policies), 96
trade unions
Burns on, 74–75
in public sector, 74–75
on wage and price guideposts, 11

unemployment, 8, 16
inflation and, 9, 74, 78
Phillips curve and, 97
rates of, 49f
Solow on, 15
Union Oil Company, 41
unions. See trade unions

Vietnam War, 1
V-loans, 17
Volcker, Paul, 39, 45–46, 50, 66
at Federal Reserve, 55–56
Friedman on, 49–50
on Reagan, 46
voluntary controls, Friedman on, 5–6

wage and price controls
Burns on, 20–21, 66
defining, 95–96
Dent on, 29
Friedman on, 41
inflation and, 18–19
Marriott on, 27–29
Nixon on, 18–19, 30, 33f, 42, 55
for oil, 40, 69, 88
phase I of, 96, 100
phase II of, 96
phase III of, 67, 97
phase IV of, 67, 97
Shultz on, 65
on US dollar, 37–38
wage and price guideposts, 65
causality and, 16
defining, 95–96
free market and, 11–12
Friedman on, 3–7
goals of, 10
Solow on, 8–14, 16
unions on, 11
weaknesses in, 12–13
wage setting, 1
wage-price freeze
Friedman on, 38
inflation and, 38
of Nixon, 18–19
popularity of, 22
stock market and, 22
success of, 24–25
Wall Street, bailout of, 62
Wall Street Journal, 22
Weidenbaum, Murray, 52f
Weinberger, Caspar, 66
welfare programs, 59
Burns on, 75
Whip Inflation Now campaign, 31–32, 68
history of, 98–99
World Trade Organization (WTO), 59
World War II, 100