Arthur Burns and inflation.

Economic Quarterly | January 1, 1998| | Copyright

Arthur Burns, Chairman of the Federal Open Market Committee (FOMC) of the Federal Reserve System (the Fed) from February 1970 until December 1977, was fiercely opposed to inflation. For the public, and especially for the business community, Burns embodied opposition to inflation. Nevertheless, during his tenure as head of the Fed, high rates of inflation became a pervasive fact of American life. How could that have happened?

The puzzle is especially striking as Burns became Chairman with an extraordinarily distinguished background as an economist. He had been president ...

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