The Alchemists: Three Central Bankers and a World on Fire (58 page)

“Mr. President”
:
Ibid., 517.

“My efforts to prevent closing of the gold window”
:
Robert H. Ferrell, ed.,
Inside the Nixon Administration: The Secret Diary of Arthur Burns, 1969–1974
(Lawrence: University Press of Kansas, 2010), 49.

“invariably courteous”
:
Milton Viorst, “The Burns Kind of Liberal Conservatism,”
New York Times,
November 9, 1969.

“I respect his independence”
:
Eileen Shanahan, “Nixon Aide Sees Price Rise Relief,”
New York Times,
February 1, 1970.

“When you gentlemen get up in the morning”
:
Stephen H. Axilrod,
Inside the Fed
(Cambridge, MA: MIT Press, 2009), 62.

“I knew that I would be accepted”
:
Ferrell,
Inside the Nixon Administration,
47–48

Charles Colson . . . spread the story
:
Wyatt C. Wells,
Economist in an Uncertain World: Arthur F. Burns and the Federal Reserve, 1970–1978
(New York: Columbia University Press, 1994), 73.

Another rumor spread by the White House
:
Ferrell,
Inside the Nixon Administration,
48.

“Time is getting short”
:
Burton A. Abrams, “How Richard Nixon Pressured Arthur Burns: Evidence from the Nixon Tapes,”
Journal of Economic Perspectives
20, no. 4 (Fall 2006).

By the end of 1970,
Time
had published a cover
:
Time,
December 14, 1970.

In a contract negotiated in 1970
:
“Business: 1970: The Year of the Hangover,”
Time,
December 28, 1970.

“that steakhouse menus arrived”
:
David Frum,
How We Got Here: The 70’s
(New York: Basic Books, 2000), 291.

He also put out a
THANK YOU FOR NOT SMOKING
sign
:
William Greider,
Secrets of the Temple
(New York: Simon & Schuster, 1989), 66.

“as a diversified conglomerate”
:
Donald F. Kettl,
Leadership at the Fed
(New Haven, CT: Yale University Press, 1986).

The son of a town manager
:
Eric Gelman et al., “America’s Money Master,”
Newsweek,
February 24, 1986, 46.

“I used to say that I never”
:
Greider,
Secrets of the Temple,
86.

On an air force jet
:
Ibid., 116.

“The Anguish of Central Banking”
:
Arthur F. Burns, “The Anguish of Central Banking,” lecture, Per Jacobsson Foundation Lectures, Belgrade, September 30, 1979.

“Scylla and Charybdis have now come together”
:
“Meeting of the Federal Open Market Committee,” transcript, Board of Governors of the Federal Reserve System, Washington, DC, October 6, 1979.

“I said he would remember the press conference”
:
Joseph R. Coyne, “Reflection on the FOMC Meeting of October 6, 1979,”
Federal Reserve Bank of St. Louis Review
87, no. 2 (March/April 2005): 313.

“Burns smoked a pipe”
:
Peter T. Kilborn, “Already a New Look at a Legend,”
New York Times,
January 24, 1988.

“The Credit Crunch Is On”
:
David Pauly et al., “The Credit Crunch Is On,”
Newsweek,
March 31, 1980, 52.

In 1981, one man who said he was upset
:
Joseph B. Treaster,
Paul Volcker: The Making of a Financial Legend
(Hoboken, NJ: John Wiley & Sons, 2000), 6.

“premeditated and cold-blooded murder”
:
Ibid.

CHAPTER 6: SPINNING THE ROULETTE WHEEL IN MAASTRICHT

“probably one of the world’s most unsuccessful diplomatic missions”
:
Gilbert Kaplan, “Mad about Music,” June 6, 2004, radio broadcast, transcript, http://www.wqxr.org/#!/programs/mam/2004/jun/06/.

“Go for the jugular”
:
Sebastian Mallaby,
More Money Than God: Hedge Funds and the Making of a New Elite
(London: Penguin Press, 2010), 161.

“Massive speculative flows”
:
Larry Elliott, Will Hutton, and Julie Wolf, “Pound Drops Out of ERM,”
Guardian,
September 17, 1992, 1.

In the first century AD
:
Otmar Issing,
The Birth of the Euro
(Cambridge: Cambridge University Press, 2008), 3.

“The solidarity in production thus established”
:
“The Schuman Declaration—9 May 1950,” European Union, http://europa.eu/about-eu/basic-information/symbols/europe-day/schuman-declaration/index_en.htm.

“Not all Germans believe in God”
:
Ibid., 23.

“Today, as far as I know”
:
Mary Elise Sarotte,
1989: The Struggle to Create Post–Cold War Europe
(Princeton, NJ: Princeton University Press, 2009), 37.

At 10:30 p.m.
:
Ibid., 43.

“destiny today is that Germany can only exist in a united Europe”
:
Karl Jaspers and Hannah Arendt,
Correspondence, 1926–1969
(New York: Mariner, 1993), 17.

On December 3, 1991
:
Kenneth Dyson and Kevin Featherstone,
The Road to Maastricht: Negotiating Economic and Monetary Union
(Oxford: Oxford University Press, 1999), 202.

“It’s done now”
:
Sarah Lambert, “Mozart Ushers in New Dawn at Maastricht,”
Independent
(London), February 8, 1992, 9.

“It can’t happen”
:
Rudiger Dornbusch, “The Euro Controversy,” MIT Department of Economics Editorial, 2001.

In
2005, Alabama paid
:
“Federal Taxes Paid vs. Spending Received by State,” Tax Policy Center, October 19, 2007, http://taxfoundation.org/tax-topics/federal-taxes-paid-vs-spending-received-state.

The bailout of savings and loans
:
Timothy Curry and Lynn Shibut, “The Cost of the Savings and Loan Crisis: Truth and Consequences,”
FDIC Banking Review
13, no. 2 (December 2000), 26–35.

Losses in Texas
:
FDIC Division of Research and Statistics,
History of the Eighties, vol. 1, An Examination of the Banking Crises of the 1980s and early 1990s
, 183, http://www.fdic.gov/bank/historical/history/vol1.html.

In 2007 . . . 787,000 more Americans relocated from
the Northeast to the South:
Michael Keegan and Stephen Rountree, “Map: U.S. Migration Flows,”
Pew Research Center
, December 17, 2008, http://www.pewsocialtrends.org/2008/12/17/u-s-migration-flows/.

Barry Eichengreen
:
Barry Eichengreen, “One Money for Europe? Lessons from the U.S. Currency Union,”
Economic Policy
5, no. 10 (1990): 117–87.

“In the beginning there would be important disagreements”
:
Martin Feldstein, “EMU and International Conflict,”
Foreign Affairs,
November/December 1997, 60.

“Here’s how the story has been told”
:
Paul Krugman, “The Euro: Beware of What You Wish For,”
Fortune,
December 1998.

“The European Commission did invite economists”
:
Eduardo Porter, “A Tempting Rationale for Leaving the Euro,”
New York Times,
May 16, 2012, B1.

On November 3, 1997
:
Lionel Barber, “The Euro: Single Currency, Multiple Injuries: Lionel Barber Recounts the Race for the ECB Presidency and the Price of Chirac’s Insistence on a Frenchman,”
Financial Times,
May 5, 1998, 2.

“Who is this man”
:
Alastair Campbell,
The Blair Years: Excerpts from the Alastair Campbell Diaries
(London: Hutchinson, 2007), 299.

“the most difficult hours I have experienced in Europe”
:
Katherine Butler, “Blair Seals Backroom Deal over Presidency of Central Bank but Experts Fear Ferocious Row Could Ruin Currency’s Credibility,”
Independent (London)
, May 4, 1998.

CHAPTER 7: MASARU HAYAMI, TOMATO KETCHUP, AND THE AGONY OF ZIRP

“Extreme policy mistakes were the primary cause”
:
Ben S. Bernanke, “Comment on America’s Historical Experience with Low Inflation,”
Journal of Money, Credit, and Banking
32, no. 4 (November 2000, Part 2), 995.

It was calculated that the garden around the Imperial Palace
:
Richard Werner,
Princes of the Yen: Japan’s Central Bankers and the Transformation of the Economy
(Armonk, NY: M. E. Sharpe 2003), 89.

Loan officers would even show up
:
Ibid., 96.

“He was called Pope”
:
Ibid., 62.

“Japan does not need any more steel”
:
Ibid., 61.

In one story that made
its way around the Bank of Japan
:
Richard C. Koo,
The Holy Grail of Macroeconomics: Lessons from Japan’s Great Recession
(Hoboken, NJ: John Wiley & Sons, 2009), 237.

Bernanke acknowledged this reality in a 2002 speech
:
Ben S. Bernanke, “Making Sure ‘It’ Doesn’t Happen Here,” remarks, National Economists Club, Washington, DC, November 21, 2002, http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm.

“Purchasing Japanese government bonds can’t be an option”
:
Alexander Urquhart, “BOJ Resists Government Bond Fund Scheme,”
South China Morning Post,
February 12, 1999, 5.

“To this outsider”
:
Ben S. Bernanke, “Japanese Monetary Policy: A Case of Self-Induced Paralysis,” paper, ASSA Meetings, Boston, January 9, 2000.

“We are getting closer to the stage”
:
“End to Deflation Fears Nearing, BOJ Chief Says,”
Japan Times,
May 20, 2000.

“The decision to end the zero-interest-rate policy was not wrong”
:
“BOJ Adopts Quantitative Monetary Easing Policy,”
Daily Yomiuri
(Tokyo), March 20, 2001, 1.

“It was a very difficult decision to make”
:
Mayumi Negishi, “Hayami Says Jesus Guided Him through Five-Year Ordeal,”
Japan Times,
March 20, 2003.

“Does an economy with a zero nominal interest rate”
:
Alan S. Blinder, “Monetary Policy at the Zero Lower Bound: Balancing the Risks,”
Journal of Money, Credit, and Banking
32, no. 4 (November 2000), 1093.

“I promise”
:
Kazuo Ueda, “Japan’s Experience with Zero Interest Rates,”
Journal of Money, Credit, and Banking
32, no. 4 (November 2000), 1107.

CHAPTER 8: THE JACKSON HOLE CONSENSUS AND THE GREAT MODERATION

“It’s a very unusual day for an economist”
:
“Queen Knights Fed Chairman Greenspan,”
Associated Press
, September 26, 2002.

“What time of year are you going to hold it?”
:
Tim Todd and Bill Medley,
In Late August
(Kansas: Federal Reserve Bank of Kansas City, 2011).

Volcker quickly became a regular
:
Eric Gelman, “America’s Money Master,”
Newsweek,
February 24, 1986.

New York Times
columnist Paul Krugman
:
Paul Krugman, “Pre-reading for Jackson Hole,”
Conscience of a Liberal
(blog),
New York Times,
August 25, 2011.

Don Kohn Death March
:
Jon Hilsenrath, “The Path of Kohn: Crisis Changes a Fed Vet,”
Wall Street Journal,
April 11, 2009.

At Jackson Hole, two top academic economists
:
Charles R. Bean, with Alan Blinder and John Taylor, “Monetary Policy After the Fall,” paper presented and remarks, 2010 Economic Policy Symposium, Jackson Hole, WY.

“South Florida is working off a totally new economic model”
:
Motoko Rich and David Leonhardt, “Trading Places: Real Estate Instead of Dot-Coms,”
New York Times,
March 25, 2005.

On the sunny Mediterranean coast of Spain
:
“In Come the Waves,”
Economist,
June 16, 2005.

In 1980 . . . By 2005
:
Federal Reserve Statistical Release, accession number Z.1.B.100.eB.100, http://federalreserve.gov/releases/z1/; Bureau of Economic Analysis, “Gross Domestic Product,” http://bea.gov/national/index.htm#gdp.