Sometimes people are just wrong

 [[{“value”:”The puzzle was that, despite M1 growth in excess of 5 percent during 1970 and 10 percent during the first half of 1971, the engine still continued to sputter.  At the June 1971 meeting of the FOMC, the Fed’s chief economist admitted bafflement.  “Why is it that the very high recent growth rates of money…fail
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The puzzle was that, despite M1 growth in excess of 5 percent during 1970 and 10 percent during the first half of 1971, the engine still continued to sputter.  At the June 1971 meeting of the FOMC, the Fed’s chief economist admitted bafflement.  “Why is it that the very high recent growth rates of money…fail to produce a satisfactory real performance?” asked Charles Partee.

At the same time, Milton Friedman was writing Arthur Burns and telling him he was “appalled” by the high rates of money growth.

That is from the quite interesting 1998 book Allen J. Matusow, Nixon’s Economy: Booms, Busts, Dollars, and Votes.

I had not known that in 1971, for a while, President Nixon was pushing for a uniform ten percent tax on imports into the United States.  That was then, this is now…

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