Laurence Meyer
Encyclopedia
Laurence Meyer is an economist
and was a United States Federal Reserve System
governor from June 1996 to January 2002.
Meyer received a B.A. (magna cum laude) from Yale University
in 1965 and a Ph.D. in economics from the Massachusetts Institute of Technology
in 1970. He then taught at Washington University in St. Louis
for 27 years. Meyer also ran an economic consulting firm, Laurence H. Meyer and Associates, with two former students. After he moved to the Fed, he sold his interest in the firm and it renamed itself Macroeconomic Advisers. He won several economic forecasting
awards while running the company.
He was nominated to the Fed by President Bill Clinton
along with Alice Rivlin
in 1996. At the Fed, Meyer was one of the Governors most ready to raise interest rate
s, because he believed that the economy was operating near full capacity, and especially that employment was near the non-accelerating inflation rate of unemployment
, or the rate that would cause inflation
. Alan Greenspan
, the Chairman at that time, was one of the leaders of the idea that improved productivity
would allow the Fed to keep interest rates low without causing inflation.
After leaving the Fed, Meyer became a Distinguished Scholar at the Center for Strategic and International Studies
. He also resumed working with Macroeconomic Advisers.
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
and was a United States Federal Reserve System
Federal Reserve System
The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907...
governor from June 1996 to January 2002.
Meyer received a B.A. (magna cum laude) from Yale University
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
in 1965 and a Ph.D. in economics from the Massachusetts Institute of Technology
Massachusetts Institute of Technology
The Massachusetts Institute of Technology is a private research university located in Cambridge, Massachusetts. MIT has five schools and one college, containing a total of 32 academic departments, with a strong emphasis on scientific and technological education and research.Founded in 1861 in...
in 1970. He then taught at Washington University in St. Louis
Washington University in St. Louis
Washington University in St. Louis is a private research university located in suburban St. Louis, Missouri. Founded in 1853, and named for George Washington, the university has students and faculty from all fifty U.S. states and more than 110 nations...
for 27 years. Meyer also ran an economic consulting firm, Laurence H. Meyer and Associates, with two former students. After he moved to the Fed, he sold his interest in the firm and it renamed itself Macroeconomic Advisers. He won several economic forecasting
Economic forecasting
Economic forecasting is the process of making predictions about the economy. Forecasts can be carried out at a high level of aggregation - for example for GDP, inflation, unemployment or the fiscal deficit - or at a more disaggregated level, for specific sectors of the economy or even specific...
awards while running the company.
He was nominated to the Fed by President Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
along with Alice Rivlin
Alice Rivlin
Alice Mitchell Rivlin is an economist, a former U.S. Cabinet official, and an expert on the budget. She has served as the Vice Chairman of the Federal Reserve, the Director of the White House Office of Management and Budget, and the first Director of the Congressional Budget Office...
in 1996. At the Fed, Meyer was one of the Governors most ready to raise interest rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...
s, because he believed that the economy was operating near full capacity, and especially that employment was near the non-accelerating inflation rate of unemployment
NAIRU
In monetarist economics, particularly the work of Milton Friedman, on which also worked Lucas Papademos and Franco Modigliani in 1975,NAIRU is an acronym for Non-Accelerating Inflation Rate of Unemployment, and refers to a level of unemployment below which inflation rises.It is widely used in...
, or the rate that would cause inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
. Alan Greenspan
Alan Greenspan
Alan Greenspan is an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. He currently works as a private advisor and provides consulting for firms through his company, Greenspan Associates LLC...
, the Chairman at that time, was one of the leaders of the idea that improved productivity
Productivity
Productivity is a measure of the efficiency of production. Productivity is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input...
would allow the Fed to keep interest rates low without causing inflation.
After leaving the Fed, Meyer became a Distinguished Scholar at the Center for Strategic and International Studies
Center for Strategic and International Studies
The Center for Strategic and International Studies is a bipartisan Washington, D.C., foreign policy think tank. The center was founded in 1962 by Admiral Arleigh Burke and Ambassador David Manker Abshire, originally as part of Georgetown University...
. He also resumed working with Macroeconomic Advisers.