Journal of Economic Perspectives—Volume 20, Number 4—Fall 2006—Pages 177–188
How Richard Nixon Pressured Arthur Burns: Evidence from the Nixon Tapes
Burton A. Abrams
"...This episode of Richard Nixon and Arthur Burns in the run-up to the 1972 election illustrates the danger of permitting too much discretion in the implementation of monetary policy. It is time to consider an explicit rule for monetary policy, whether that rule targets only inflation or some mixture of inflation and output or unemployment. Monetary policy is too important to be left to the discretion of central bankers, who may be subject to errors in economic judgment or to manipulation by politicians..."