Allan H. Meltzer facts for kids
Quick facts for kids
Allan H. Meltzer
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Meltzer in 2003
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| Born | February 6, 1928 |
| Died | May 8, 2017 (aged 89) |
| Nationality | American |
| Institution | Carnegie Mellon University |
| Field | Economist |
| School or tradition |
Monetarism |
| Alma mater | Duke University (BA, MA) UCLA (PhD) |
| Influences | Karl Brunner Milton Friedman |
| Information at IDEAS / RePEc | |
Allan H. Meltzer (born February 6, 1928 – died May 8, 2017) was an American economist. He was a professor at Carnegie Mellon University in Pittsburgh, Pennsylvania. Meltzer was an expert on how governments manage money. He also studied the US Federal Reserve System. He wrote many books and papers about money and banking.
Meltzer believed that "Capitalism without failure is like religion without sin. It doesn't work." This means that if companies are always saved from failing, they might not learn from their mistakes. He thought that allowing some failures helps businesses become stronger.
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Allan H. Meltzer's Life and Work
Allan H. Meltzer was born in Boston, Massachusetts in 1928. He went to Duke University and earned two degrees there. Later, he received his Ph.D. from UCLA in 1958. After that, he became a professor at Carnegie Mellon University.
His Role in Economic Discussions
From 1973 to 1999, Meltzer led a group called the Shadow Open Market Committee. This group was made up of economists and bankers. They would meet to discuss and give their opinions on the actions of the Federal Reserve's main committee.
Meltzer also worked for the US government. He was an acting member of the Council of Economic Advisers in 1988–89. This was during the end of Ronald Reagan's time as president. He also spent time as a visiting scholar at the American Enterprise Institute.
In 2003, Meltzer received the first-ever Irving Kristol award. President George W. Bush spoke at the award dinner. He joked that he was just a "warm-up act" for Allan Meltzer.
The Meltzer Commission
Meltzer was the leader of a group called the Meltzer Commission. This group was asked by the US Congress to study big international financial organizations. These included the International Monetary Fund and the World Bank.
The Commission's main report in 2000 suggested some changes. For example, they thought the World Bank should stop lending money to "middle income countries." Not everyone on the commission agreed with these ideas. The report's suggestions were not put into action by later US governments.
Views on the Economy
Meltzer often shared his thoughts on important economic events. He thought the Federal Reserve made a mistake when it saved the company AIG in 2008. He believed that such problems should be fixed early or left for the market to solve.
He also had strong opinions about the Federal Reserve's decision not to save Lehman Brothers. At first, he seemed to agree with it. But later, he said it was "one of the worst blunders in Federal Reserve history." He felt that after years of saving big companies, the Fed changed its policy suddenly.
In 2009, Meltzer warned about a big increase in bank money. He thought it would cause a lot of inflation. Inflation means prices go up. However, years later, inflation in the US remained low.
Important Books and Ideas
Meltzer wrote a very detailed book called A History of the Federal Reserve. Many people see it as the most complete history of the US central bank. The book is in several parts. It covers the Federal Reserve's history from its start in 1913 up to the mid-1980s.
Meltzer was also the president of the Mont Pelerin Society from 2012 to 2014. He was against the US using a "cap and trade" system. This system is meant to help fight global climate change by controlling carbon emissions.
