<p>Well, the Fed began raising interest rates to record highs in late 1978. I thought it was mainly to quell inflation. Maybe Burns - who was Fed chairman up to Jan. 1978 - thought it was mainly to strengthen the value of the dollar.</p>

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2021-02-26T17:54:24.613Z
Hi, welcome to Economics:Stack Exchange. Please consider improving the answer by adding references from reputable sources. As many other science stacks we encourage links to external sources. See our [help center](https://economics.stackexchange.com/help/how-to-answer).
1muflon1
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2021-02-26T16:20:31.120Z
2021-02-26T16:20:31.120Z
Daniel
<p>In addition to that, there was still a strong belief in the implication of the Phillips-Curve. Some economists believed that, to decrease unemployment, the Fed had to increase inflation. Then later the Lucas Critique became prominent. More here <a href="https://en.wikipedia.org/wiki/Lucas_critique" rel="nofollow noreferrer">https://en.wikipedia.org/wiki/Lucas_critique</a></p>

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2021-02-26T17:51:07.947Z
2021-02-26T17:51:07.947Z
Nikolai Kl
<p>Arthur Burns (1979):</p>
<blockquote>
<p>&quot;Benign neglect&quot; of the external value of the dollar came to an end dramatically, and I would hope irrevocably, in November 1978.</p>
</blockquote>
<p>What event(s) of Nov 1978 is Arthur Burns referring to?</p>

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2021-02-26T10:26:47.443Z
Could you please add a link to the article or full reference?
1muflon1
<economic-history>
What happened to the dollar in Nov 1978?
user23625
# What happened to the dollar in Nov 1978?

(Asked by: username_0 on 2021-02-26)

Arthur Burns (1979):

> "Benign neglect" of the external value of the dollar came to an end dramatically, and I would hope irrevocably, in November 1978.

What event(s) of Nov 1978 is Arthur Burns referring to?

**Tags:** economic-history

> **Comments:**
> **username_1**: Could you please add a link to the article or full reference?  

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## 2 answers

### Answer by username_2 on 2021-02-26. Score: 1

Well, the Fed began raising interest rates to record highs in late 1978. I thought it was mainly to quell inflation. Maybe Burns - who was Fed chairman up to Jan. 1978 - thought it was mainly to strengthen the value of the dollar.

> **Comments:**
> **username_1**: Hi, welcome to Economics:Stack Exchange. Please consider improving the answer by adding references from reputable sources. As many other science stacks we encourage links to external sources. See our [help center](https://economics.stackexchange.com/help/how-to-answer).  

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### Answer by username_3 on 2021-02-26. Score: 1

In addition to that, there was still a strong belief in the implication of the Phillips-Curve. Some economists believed that, to decrease unemployment, the Fed had to increase inflation. Then later the Lucas Critique became prominent. More here <https://en.wikipedia.org/wiki/Lucas_critique>


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