Council of Economic Advisers

The Council of Economic Advisers (short CEA , German  Council of Economic Advisers ) is an advisory body to the President of the United States . It is part of the Executive Office of the President and advises various offices in the White House on economic policy issues. The council members and its chairman (currently acting Tomas J. Philipson ) are appointed by the president with the approval of the Senate . The Council of Economic Advisers is also responsible for the annual Economic Report of the President .

history

The Council was created by the Employment Act in 1946 to provide the President with objective economic research and advice on economic policy initiatives in a variety of areas of importance, both domestically and internationally. In its first seven years, the Council made five major technical advances: 1) replacing a “cyclical model” of the economy with a “growth model”, 2) setting quantitative goals in economic policy, 3) using theories of fiscal drag and the full employment budget, 4) the recognition of the need for flexibility in tax policy and 5) the replacement of the concept of structural unemployment with that of insufficient demand.

In 1949, an argument broke out between Chairman Edwin Nourse and Councilor Leon Keyserling. Nourse believed that the government would have to choose between "guns or butter". Keyserling argued, however, that strong economic growth can cope with increased military spending without a deterioration in living standards. Keyserling was assisted by two influential advisors to President Truman , Dean Acheson and Clark M. Clifford . In response, Nourse resigned as chairman, but warned the government of the dangers of high public deficits and lavish arms spending. Keyserling moved up to the chair and influenced Truman's fair deal policy and Resolution 68 of the National Security Council from this position , which declared in April 1950 that the urgently needed expansion of the military had no effect on living standards or the transformation of the free character the economy ("transformation of the free character of our economy").

Members

Tomas J. Philipson, current Acting Chairman of the CEA

• Chairman: Tomas J. Philipson (acting)
• Member: Tyler Goodspeed

former members

Former chairmen of the committee are:

• Kevin Hassett (2017-2019)
• Jason Furman (2013-2017)
• Alan B. Krueger (2011-2013)
• Austan Goolsbee (2010-2011)
• Christina Romer (2009-2010)
• Edward Lazear (2006-2009)
• Ben Bernanke (2005-2006)
• Harvey S. Rosen (2005)
• N. Gregory Mankiw (2003-2005)
• Glenn Hubbard (2001-2003)
• Martin Neil Baily (1999-2001)
• Janet Yellen (1997-1999)
• Joseph E. Stiglitz (1995–1997)
• Laura D. Tyson (1993-1995)
• Michael Boskin (1989-1993)
• Beryl Wayne Sprinkel (1985-1989)
• Martin S. Feldstein (1982-1984)
• Murray Weidenbaum (1981–1982)
• Charles Schultze (1977-1981)
• Alan Greenspan (1974-1977)
• Herbert Stein (1972–1974)
• Paul McCracken (1969–1971)
• Arthur Melvin Okun (1968–1969)
• Gardner Ackley (1964-1968)
• Walter Heller (1961–1964)
• Raymond J. Saulnier (1956–1961)
• Arthur F. Burns (1953-1956)
• Leon Keyserling (1950–1953)
• Edwin Griswold Nourse (1946–1950)

Influential members of the council also included:

• Paul Krugman (1982-1983)
• William D. Nordhaus (1977–1979)
• Hendrik Houthakker (1969–1971)
• Otto Eckstein (1964–1966)
• James Tobin (1961–1962)
• John D. Clark (1946-1953)

See also

• President's Economic Recovery Advisory Board
• Expert council for assessing macroeconomic development

Web links

• Website of the Council of Economic Advisers (English)

Individual evidence

1. ^ Walter S. Salant: Some Intellectual Contributions of the Truman Council of Economic Advisers to Policy-making . History of Political Economy, 1973 5 (1), pp. 36-49.
2. ^ Lester H. Brune: Guns and Butter: the Pre-korean War Dispute over Budget Allocations: Nourse's Conservative Keynesianism Loses Favor Against Keyserling's Economic Expansion Plan . American Journal of Economics and Sociology, 1989, 48 (3), pp. 357-371. ISSN  0002-9246