"There does seem to me a latent danger— no part of the intention of present European leaders— implicit in the development [of the euro]. Regional monetary unity implies a greater degree of visible loss of autonomy for member countries; yet national econom ic problems will remain. The temptation could arise to solve some of these regional adjustment problems within Europe by direct subsidies to producers, by protection against the outside world, or by other means damaging to the trading opportunities of others."
Paul Adolph Volcker Jr. was an American economist who served as the 12th chairman of the Federal Reserve from 1979 to 1987. During his tenure as chairman, Volcker was widely credited with having ended the high levels of inflation seen in the United States throughout the 1970s and early 1980s, with measures known as the Volcker shock. He previously served as the president of the Federal Reserve Ban
"It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. [I]f the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with "free banking."
"Federal Reserve chairman Paul Volcker essentially eliminated M1 as a target indicator. His successor, Alan Greenspan, eliminated M2. On the other hand, in the past year or two, Greenspan has said on various occasions that maybe we should reconsider using M2. The trouble is that all these measures of money cannot be relied on because the velocity of money changes. It is quite unstable."
"This is a time of testing — a testing not only of our capacity collectively to reach coherent and intelligent policies, but to stick with them."
"Productivity growth in this country has actually been negative in a recent period. And, we have had higher oil prices; of course…. Under those conditions, the standard of living of the average American has declined."
"In the 1950s and 1960s, a substantial number of economists taking on a role of social philosopher defended a "little" inflation as a kind of social solvent, helping to reconcile competing political and economic pressures.… It was a game of mirrors, but it seemed acceptable for a while, more acceptable than imposing the degree of fiscal, monetary and other restraints necessary to deal with inflation."
"Fred Hirschs last dicta: "A controlled disintegration in the world economy is a legitimate objective for the 1980s"… The phrase captures what seems to me the prevailing attitudes and practices of most governments in this decade."