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Re: the 40s

> OK, Keynesians - if the wartime monetary policy was so rational, what
> happened in the late 40s/early 50s to change policy away from forced low
> interest rates?
>
> Doug
>
> --
>
> Doug Henwood
> [dhenwood@xxxxxxxxx]
> Left Business Observer
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The Treasury Accord in 1951, under which short term rates were allowed to rise
and long-term rates to rise slightly.  After its demise in 1952, there is
controversy as to why the Fed followed a restrictive policy (maybe "drying-out"
the economy and eliminating inflationary expectations that had developed during
the post WWII and Korean War inflations).

Lonnie K. Stevans
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