Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Keynesianism, Pennsylvania Avenue Style: Some Economic Consequences of the Employment Act of 1946
Journal of Economic Perspectives
vol. 10,
no. 3, Summer 1996
(pp. 41–53)
(Complimentary)
Abstract
The Employment Act of 1946 created the Council of Economic Advisers (CEA)--and served as a convenient marker of the government's acceptance of the burden of stabilizing the macroeconomy. The willingness of post-WWII governments to let automatic stabilizers function in recessions may well have moderated the post-WWII business cycle. The CEA has also served as an advocate of allocative efficiency in economic policy. Its relative success can be primarily ascribed to Chairman Arthur Burns, who hired a CEA staff composed of short-term appointees whose principal loyalty was to economic rationality.Citation
De Long, J Bradford. 1996. "Keynesianism, Pennsylvania Avenue Style: Some Economic Consequences of the Employment Act of 1946." Journal of Economic Perspectives, 10 (3): 41–53. DOI: 10.1257/jep.10.3.41JEL Classification
- E60 Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
- N12 Economic History: Macroeconomics; Growth and Fluctuations: U.S.; Canada: 1913-
- N42 Economic History: Government, War, Law, and Regulation: U.S.; Canada: 1913-
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