Recent Monetary Developments and Future Economics Performance: Hearings Before the Subcommittee on Domestic Monetary Policy of the Committee on Banking, Finance, and Urban Affairs, House of Representatives, Ninety-fifth Congress, First Session, September 27, 1977
United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Domestic Monetary Policy
U.S. Government Printing Office, 1977 - Electronic books - 95 pages
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accelerating action actual adjustment aggregates answer banks base basis believe cent Chairman Mitchell changes Committee Congress continue cost course demand deposits developments economy effect estimated expansion expected fact factors faster Federal funds rate Federal Reserve fiscal forecast funds future going Government Governor Partee growth rate happened hearings higher House important increase indicated inflation rate interest interest rates kind labor force less look major means measured monetary aggregates monetary growth monetary policy money growth money supply months move occurred past percent performance perhaps period position pressure production Professor quarter question range rapid real output reason recent recession recovery reduce reflect result rise seems short short-term slow spending statement structural subcommittee suggest target tend Thank things trends unemployment
Page 4 - Statement by Arthur F. Burns Chairman, Board of Governors of the Federal Reserve System before the Committee on Banking, Finance, and Urban Affairs...
Page 23 - ... market for jobs. One of the most critical needs is to avoid governmental actions that compound the problems that newcomers to the job market already have. New entrants — whether young people or adult women — often cannot be highly productive in the initial phase of their employment. Minimum wage legislation is blind to that fact, and thus limits employment opportunities for job seekers with little or no recent work experience. With young people and other newcomers to the labor force now accounting...
Page 24 - ... per cent in output per hour. Since we are now in a phase of the business cycle when productivity gains are more likely to slow than to accelerate, the upward pressures on wages may lead to still stronger pressures on unit labor costs. Many businesses — not always justifiably — already feel a need to recoup labor cost increases or to increase profit margins. To the extent that they succeed in raising their selling prices, the inflation rate will tend to worsen and so too will inflationary...
Page 73 - ... trade union intransigence, greedy business corporations, spendthrift consumers, bad crops, harsh winters, OPEC cartels and so on — are either consequences of inflation, or excuses by Washington or sources of temporary blips of inflation. There is one and only one basic cure for inflation : showing monetary growth.
Page 1 - Board with respect to recent monetary developments. As I understand it, the purpose of this hearing is to provide an updating of the recent monetary oversight hearings of your parent committee, at which Chairman Burns appeared. My remarks therefore will supplement his, and I think it would be appropriate to include a copy of the Chairman's testimony on that occasion as an attachment to my much briefer statement.
Page 25 - ... hour. Since we are now in a phase of the business cycle when productivity gains are more likely to slow than to accelerate, the upward pressures on wages may lead to still stronger pressures on unit labor costs. Many businesses — not always justifiably — already feel a need to recoup labor cost increases or to increase profit margins. To the extent that they succeed in raising their selling prices, the inflation rate will tend to worsen and so too will inflationary expectations. To the extent...
Page 2 - This rate of expansion, of course, is well above the FOMC's stated longer-run range of projections. Broader measures of the money supply, on the other hand, have grown at rates only a little above the upper end of the committee's projected ranges. During the past 6 months, M2 and M3 have increased at annual rates of 9.9 percent and ll.3 percent, respectively.