Newspaper article THE JOURNAL RECORD

Economists' Memos to Greenspan: Dollar Needs Transfusion

Newspaper article THE JOURNAL RECORD

Economists' Memos to Greenspan: Dollar Needs Transfusion

Article excerpt

Take a memo. To Alan Greenspan, Federal Reserve chairman-designate. Tell him to restore world confidence in the dollar and keep the lid on inflation.

Oh, and tell him to keep the 5-year-old economic expansion going while he's at it.

At the invitation of The , three prominent economists were given the opportunity to write brief memorandums - in their own words - to pass along some friendly advice to the new Fed chief, nominated by President Reagan this past week to replace Paul Volcker.

Although the messages were not quite as simple as those stated above, one overriding message emerged: While the economy is in fairly good shape, the dollar could use a transfusion.

The economists urged Fed Chairman Greenspan to launch some bold new initiatives to prop up the currency - without risking the achievements of his widely admired predecessor.

Here are the experts who have offered the free advice to Greenspan:

- Michael K. Evans, a private consultant and president of Evans Economics Inc. in Washington, D.C. Asked to characterize his school of economic thought, Evans says he is generally viewed as a moderate Republican.

- Lawrence A. Kudlow, chief economist for the investment firm Bear, Stearns & Co. and formerly associate director for economics and planning for the Office of Management and Budget in early days of the Reagan admnistration. Kudlow labels himself a ``mainstream conservative.''

- Arthur B. Laffer, currently a professor of economics at Pepperdine University, Malibu, Calif. He is also chairman of A.B. Laffer Associates and a member of President Reagan's economic policy advisory board. Laffer is often given credit for popularizing the doctrine of ``supply-side'' economics, which holds that tax cuts can actually increase government revenues by putting more money into consumers' hands and fueling economic growth. …

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