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

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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 1 - It is my pleasure to appear before this committee today to present the views of the Reserve Officers Association of the United States on Navy Seapower.
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.
Page 73 - ... the most important are the pressures to create money in order to pay for exploding Federal spending and in order to promote the goal of "full employment.

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