THE NATION: Fateful Error

An astonishing thing has been going on in Washington, and its direful importance is understood by only a handful of U.S. citizens. On the doom-laden Question of Inflation, the President of the U.S. is allowing the power of his office to be thrown against the weight & authority of expert knowledge and understanding.

Nearly every authority on economics in general or finance in particular says—and has said publicly—that:

1) The Federal Reserve Board should stop buying Government securities from banks at the present pegged prices. Reason: unlimited FRB buying gives banks more money for loans, disproportionately adds to the amount of...

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