Council of Economic Advisers

From Infogalactic: the planetary knowledge core
Jump to: navigation, search
Council of Economic Advisers
Council of Economic Advisers.png
Agency overview
Formed 1946
Preceding agencies
Headquarters Eisenhower Executive Office Building
Employees About 35
Agency executives
Parent agency Executive Office of the President of the United States
Website Council of Economic Advisers

The Council of Economic Advisers (CEA) is an agency within the Executive Office of the President that advises the President of the United States on economic policy.[2] The CEA provides much of the objective empirical research for the White House and prepares the annual Economic Report of the President.


The current Chairman of the CEA is Jason Furman, who was appointed by President Obama on June 10, 2013.[3] The two current Members are Jay Shambaugh and Sandra Black.

The council's Chairman is nominated by the president and approved by the United States Senate. The Members are appointed by the president. The staff of the council consists of a Chief of Staff as well as about 20 academic economists, plus three permanent economic statisticians.


The council was established by the Employment Act of 1946 to provide presidents with objective economic analysis and advice on the development and implementation of a wide range of domestic and international economic policy issues. In its first seven years the CEA made five technical advances in policy making, including the replacement of a "cyclical model" of the economy by a "growth model," the setting of quantitative targets for the economy, use of the theories of fiscal drag and full-employment budget, recognition of the need for greater flexibility in taxation, and replacement of the notion of unemployment as a structural problem by a realization of a low aggregate demand.[4]

In 1949 a dispute broke out between Chairman Edwin Nourse and member Leon Keyserling. Nourse believed a choice had to be made between "guns or butter" but Keyserling argued that an expanding economy permitted large defense expenditures without sacrificing an increased standard of living. In 1949 Keyserling gained support from powerful Truman advisors Dean Acheson and Clark Clifford. Nourse resigned as chairman, warning about the dangers of budget deficits and increased funding of "wasteful" defense costs. Keyserling succeeded to the chairmanship and influenced Truman's Fair Deal proposals and the economic sections of National Security Council Resolution 68 that, in April 1950, asserted that the larger armed forces America needed would not affect living standards or risk the "transformation of the free character of our economy."[5]

During the 1953–54 recession, the CEA, headed by Arthur Burns deployed non-traditional neo-keynesian interventions, which provided results later called the "steady fifties" wherein many families stayed in the economic "middleclass" with just one family wage-earner. The Eisenhower Administration supported an activist contracyclical approach that helped to establish Keynesianism as a possible bipartisan economic policy for the nation. Especially important in formulating the CEA response to the recession—accelerating public works programs, easing credit, and reducing taxes—were Arthur F. Burns and Neil H. Jacoby.[6]

The 1978 Humphrey–Hawkins Act required each administration to move toward full employment and reasonable price stability within a specific time period. It has made CEA's annual economic report highly political in nature, as well as highly unreliable and inaccurate over the standard two or five year projection periods.[7]

Past chairs and members

Past chairs include:

Past staff members include:


  1. 1.0 1.1 [1]
  2. Council of Economic Advisers<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  3. "Obama names Furman as new White House chief economist", Reuters, 2013-06-10<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  4. Salant 1973
  5. Brune 1989
  6. Engelbourg 1980
  7. Cimbala and Stout 1983


  • Brazelton, W. Robert (2001), Designing U.S. Economic Policy: An Analytical Biography of Leon H. Keyserling, New York: Palgrave, ISBN 0-333-77575-9<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Brazelton, W. Robert (1997), "The Economics of Leon Hirsch Keyserling", Journal of Economic Perspectives, 11 (4): 189–197, doi:10.1257/jep.11.4.189, ISSN 0895-3309<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Brune, Lester H. (1989), "Guns and Butter: the Pre-Korean War Dispute over Budget Allocations: Nourse's Conservative Keynesianism Loses Favor Against Keyserling's Economic Expansion Plan", The American Journal of Economics and Sociology, 48 (3): 357–371, doi:10.1111/j.1536-7150.1989.tb03189.x, ISSN 0002-9246<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Cimbala, Stephen J.; Stout, Robert L. (1983), "The Economic Report of the President: Before and after the Full Employment and Balanced Growth Act of 1978", Presidential Studies Quarterly, 13 (1): 50–61, ISSN 0360-4918<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Eizenstat, Stuart E. (1992), "Economists and White House Decisions", Journal of Economic Perspectives, 6 (3): 65–71, doi:10.1257/jep.6.3.65, ISSN 0895-3309<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Engelbourg, Saul (1980), "The Council of Economic Advisers and the Recession of 1953-1954", Business History Review, 54 (2): 192–214, doi:10.2307/3114480, ISSN 0007-6805, JSTOR 3114480<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Leeson, Robert (1997), "The Political Economy of the Inflation-unemployment Trade-off", History of Political Economy, 29 (1): 117–156, doi:10.1215/00182702-29-1-117, ISSN 0018-2702<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • McCaleb, Thomas S. (1986), "The Council of Economic Advisers after Forty Years", Cato Journal, 6 (2): 685–693, ISSN 0273-3072<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Norton, Hugh S. (1977), The Employment Act and the Council of Economic Advisers, 1946-1976, Columbia: University of South Carolina Press, ISBN 0-87249-296-6<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Salant, Walter S. (1973), "Some Intellectual Contributions of the Truman Council of Economic Advisers to Policy-making", History of Political Economy, 5 (1): 36–49, doi:10.1215/00182702-5-1-36, ISSN 0018-2702<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Sobel, Robert (1988), Biographical Directory of the Council of Economic A dvisers, New York: Greenwood Press, ISBN 0-313-22554-0<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Tobin, James; Weidenbaum, Murray, eds. (1988), Two Revolutions in Economic Policy: The First Economic Reports of Presidents Kennedy and Reagan, Cambridge: MIT Press, ISBN 0-262-70034-4<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
  • Wehrle, Edmund F. (2004), "Guns, Butter, Leon Keyserling, the AFL-CIO, and the Fate of Full-employment Economics", Historian, 66 (4): 730–748, doi:10.1111/j.1540-6563.2004.00094.x, ISSN 0018-2370<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>

External links