
The case for Fed Independence in the Nixon Tapes
Planet Money
Political Pressures on the Fed: The Nixon-Burns Dynamic
This chapter explores the intricate relationship between the Federal Reserve and the Nixon administration, focusing on Arthur Burns' tenure and the political pressures to lower the discount rate. By examining Nixon's impatience and electoral fears, as well as Burns' conflicted role, the chapter reveals the tension between economic independence and political influence. It highlights the long-term consequences of these decisions, including the rise of inflation and a subsequent recession, framing Burns' legacy as a cautionary tale for today's monetary policy.
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