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Inflation has been a major economic problem since 1965, but experience since 1969 has been especially frustrating to the nation’s economic policymakers. Inflation eontinned unabated in 1970, while unemployment rose sharply, and has since persisted in the face of relatively high unemployment. Conventional stabilization actions taken in the last three years to reduce the growth of mone and Federal expenditures have had their major impact oii outpnt rather than on the price level. This de\-elopment has led some analysts to become skeptical about the usefulness of traditional monetary and Fiscal actions in coping with the current economic situation.

Slowing in Money Growth: The Key to Success in Curbing Inflation