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Keynesianism, Pennsylvania Avenue Style: Some Economic Consequences of the Employment Act of 1946

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De Long, J Bradford

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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. Copyright 1996 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 10 (1996)
Issue (Month): 3 (Summer)
Pages: 41-53
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Handle: RePEc:aea:jecper:v:10:y:1996:i:3:p:41-53

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This page was last updated on 2009-11-16.

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