Keynesianism, Pennsylvania Avenue Style: Some Economic Consequences of the Employment Act of 1946
AbstractThe 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.
CitationDe 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.10.3.41
- 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-