Abstract

Everybody's Business

The article focuses on inflation in the U.S. and proposes measures to curb credit inflation. The new Defense Production Act gave the President powers to control some forms of credit, and immediately it became law, the Federal Reserve Board issued regulations providing for minimum down payments in installment transactions and maximum repayment periods. Presumably action to reduce the volume of new real-estate credit, already somewhat restricted by Presidential order so far as federally insured mortgages are concerned, will follow as soon as the Federal Reserve Board reaches agreement with the Housing and Home Finance Authority. However, if overexpansion of credit is to be ended, steps must also be taken to restrict mortgages on non-residential real estate and to curb general business borrowing, and it is doubtful whether the Federal Reserve Board has sufficient authority for this purpose.