Re: the 40s

[dhenwood@xxxxxxxxx (Doug Henwood)]

At 5:06 PM 2/7/95, ACSLKS@xxxxxxxxxxxxxxxx wrote:

>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).

I know about that accord. I'm asking why it happened, politically speaking,
if the superiority of low rates was so obvious to everyone.

Doug

--

Doug Henwood
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