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The current chairman of the Council is Edward Lazear , on leave of absence from Stanford University; the other members are Katherine Baicker of UCLA and Matthew Slaughter of Dartmouth . The recent past chairs of the Council are:
Other influential past members include:
Every year the Council prepares the Economic Report Of The President . The staff of the council includes about 20 academic economists, plus four permanent economic statisticians. HISTORY The Council was established by the Employment Act Of 1946 to provide the President 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 7 years the CEA made five technical advances in policy making: 1) the replacement of a "cyclical model" of the economy by a "growth model," 2) the setting of quantitative targets for the economy, 3) use of the theories of fiscal drag and full-employment budget, 4) recognition of the need for greater flexibility in taxation, and 5) replacement of the notion of unemployment as a structural problem by a realization of a low aggregate demand. 1973 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." 1989 During the 1953-54 Recession , the CEA, headed by Arthur Burns deployed traditional Republican rhetoric. However it supported an activist contracyclical approach that helped to establish Keynesianism as a 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. 1980 The 1978 Humphrey-Hawkins Act required each administration to move toward full employment and reasonable price stability within a specific time period. It has had the effect of making the 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. and Stout 1983 REFERENCES
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