The Best of Business Economics Highlights from the First Fifty Years
Since its establishment in 1965, Business Economics has been an essential resource for those who use economics in the workplace. Its consistent intent has been to distinguish itself from academic journals by focusing on what is useful to practitioners of
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THE BEST OF BUSINESS ECONOMICS HIGHLIGHTS FROM THE FIRST FIFTY YEARS
By National Association for Business Economics Edited by Robert Thomas Crow
THE BEST OF BUSINESS ECONOMICS
Selection and editorial content © National Association for Business Economics and Robert Thomas Crow 2016 Individual chapters © their respective contributors 2016 Softcover reprint of the hardcover 1st edition 2016 978-1-137-57250-9 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission. In accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 2016 by PALGRAVE MACMILLAN The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire, RG21 6XS. Palgrave Macmillan in the US is a division of Nature America, Inc., One New York Plaza, Suite 4500, New York, NY 10004-1562. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. ISBN 978-1-349-57417-9 E-PDF ISBN: 978–1–137–57251–6 DOI: 10.1007/978-1-137-57251-6 Distribution in the UK, Europe and the rest of the world is by Palgrave Macmillan®, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Library of Congress Cataloging-in-Publication Data The best of Business economics : highlights from the first fifty years / National Association of Business Economics; edited by Robert Crow. pages cm Includes bibliographical references. 1. United States—Economic policy. 2. United States—Economic conditions—1945– 3. Economics—United States. 4. Business—United States. 5. Managerial economics—United States. I. Crow, Robert, editor. II. National Association for Business Economics (U.S.), issuing body. III. Business economics (Cleveland, Ohio) HC103.B44 2015 330.973—dc23 A catalogue record for the book is available from the British Library.
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CONTENTS
Introduction Robert Thomas Crow
PART I 1965–1974 1. A New Look at Monetary and Fiscal Policy (1967) Paul A.Volcker
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Although the recent past amply demonstrates the temptation for policy makers to discount the complications that today’s actions may create for tomorrow, it would be a serious mistake to confine policy makers to a fixed monetary rule. Part of our recent difficulties stemmed from underlying developments in financial markets, such as the
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