and to alleviate the impact of the recession upon the unemployed; proposals for more effective health insurance and income maintenance; and needed improvements in the Government's economic statistics.

International trade and investment problems and policies continued to be a major concern of the Council, and during 1974 it examined the strains placed upon the world's international trade and financial mechanism by the large capital flows related to oil payments.

Early each year the President submits the Economic Report of the President to the Congress as required by the Employment Act. The Council assumes major responsibility for the preparation of this Report, which together with the Annual Report of the Council of Economic Advisers reviews the progress of the economy over the past year and outlines the Administration's policies and programs.

The Chairman is a member of the Economic Policy Board, which irects the formulation, coordination, and implementation of economic policy. The Chairman is also a member of the Executive Committee of the Economic Policy Board, which serves as the focal point for economic policy decision making and meets daily to address current issues of economic policy.

The Economic Policy Board operates with a high degree of flexibility, requesting analyses of economic problems and recommendations from the various agencies and departments of the executive branch. The Executive Committee, often augmented by the Chairman of the Board of Governors of the Federal Reserve System, meets regularly with the President to review economic conditions, make recommendations, and discuss possible changes in economic policy.

The review and analysis of the overall performance of the economy is conducted and coordinated through a series of "Troika" Working groups, comprising representatives of the Council, the Treasury, and the Office of Management and Budget (OMB). At regular intervals Puonomists from these agencies evaluate recent economic performance and formulate economic forecasts which are then reviewed by a second group, chaired by a Council Member and including the Assistant Secretary of the Treasury for Economic Policy and the Economist for OMB. The analysis and projections are then reviewed and cleared through the Chairman of the council for presentation and consideration by the Executive CommitLee, which is chaired by the Secretary of the Treasury and consists of the Chairman of the Council of Economic Advisers, the Director of OMB, the Executive Director of the Council on International Economic Policy, and the Assistant to the President for Economic Affairs, who is the Executive Director of both the Economic Policy Board and its Executive Committee.

The Chairman of the Council is a member of the President's Energy Resources Council, which was formed in October 1974 to formulate and coordinate energy policy. The Chairman is the head of the U. S. delegation to the Economic Policy Committee of the Organization for Economic Cooperation and Development, and he also serves as vice chairman of the Committee. Council Members and staff economists attended meetings of various working parties of the Committee during the year. The Chairman of the Council served as Chairman of the Advisory Committee on the Economic Role of Women, which on April 30, 1974, issued its recommendations for advancing women in industry; the Advisory Committee ended its term in August

In April Mr. Fellner and several staff economists from the Council visited the Economic Planning Agency for Japan to continue the exchange of information on economic problems and policies that was initiated during 1972. In November the Council was host to a delegation of economists from the Economic Planning Agency.

The Chairman and Council Members appeared before the full

. Economic Committee (JEC) of the Congress three times during 2. The JEC, like the Council, was created by the Employment Act .946, "to make a continuing study of matters relating to the Amic Report and to submit its own report and recommendations to te Congress." On February 7 the Council presented testimony before the JBC on the Economic Report and appeared again on July 30 to review mic developments during the first half of 1974. The Chairman Fesented testimony on September 26 regarding developments during te third quarter. The Council also appeared before the JEC Submittee on Consumer Economics on May 10. The Chairman presented Antimony on the budget before the Senate Appropriations Committee February 27 and appeared before the Senate Committee on Commerce Government Operations on May 9. He also presented testimony re the JEC Subcommittee on Economic Growth on June 12, before house Budget Committee on September 25, and before the Senate Panent Subcommittee on Investigations on October 16. Mr. Seevers Preated testimony on the Federal budget before the House Committee Appropriations on February 20 and appeared before the Senate

Public Information

In recent

The Annual Report of the Council of Economic Advisers, contained in the Economic Report of the President, is the main vehicle through which the Council informs the public of its work and its views. It presents a comprehensive review and analysis of economic conditions, forecasts, and projections for the coming year, as well as an explanation of the Administration's economic policy. years about 50,000 copies of the Economic Report have been distributed. The Council also assumes primary responsibility for the monthly publication, Economic Indicators, which is prepared by the Council's Statistical Office under the direction of Frances M. James and issued by the Joint Economic Committee with a distribution of about 10,000 copies.

The Council also presents information on and analyses of current economic problems and developments through occasional press briefings, testimony before various congressional committees, and speeches and papers presented by the Chairman and the Members of the Council. The Council answers numerous requests for information from the Congress, the press, and individual citizens, and receives individual visitors as well as business, academic, and other groups as often as is possible without interfering with other duties.

ORGANIZATION AND STAFF OF THE COUNCIL

Office of the Chairman

The Chairman is responsible for communicating the Council's views to the President. This duty is performed both through direct consultation with the President and through regular reports on economic developments. The Chairman also represents the Council at Cabinet meetings, at the Executive Committee of the Economic Policy Board, and at many other formal and informal meetings of Government officials. He also exercises ultimate responsibility for directing the work of the professional staff,

Council Members

The two Council Members directly supervise the work of the staff, are responsible for all subject matter covered by the Council, and represent the Council at numerous meetings, where they assume major responsibility for the Council's involvement. Whenever the Chairman is absent from Washington, one of the Council Members becomes Acting Chairman.

In practice the Chairman and the Council Members work as @team. For operational reasons, howevci, subject matter is divided informally between the Council Members. Mr. Fellner is responsible for analysis of business conditions, short-term forecasting, and matters related to monetary and fiscal policy; international finance; power employment and developments in the labor market; financial rkets; housing; health, education, and welfare; taxation; and social security. Mr. Seevers is responsible for the areas encomPassing international trade; energy and natural resources; food and riculture; urban and national growth policy; environmental problems; transportation; regulated industries; and antitrust questions.

Afessional Staff

At the end of 1974 the professional staff consisted of senior staff economists, two statisticians, and seven members of the junior research staff. The professional staff and their special elds of economic analysis at the end of the year were:

Frances M. James, Senior Staff Statistician, is in charge of the Statistical Office and manages the Council's economic and statistical information system. She supervises the publication of Economic Indicators and the preparation of tables and charts for the Economic Report and for the Council's work. She also directs the fact checking of memoranda, testimony, and speeches. Catherine H. Furiong, Dorothy Bagovich, Natalie V. Rentfro, and Mary P. Kane assist Miss James.

The Council conducts a student intern program, employing a limited number of graduate and undergraduate students of economics for temporary periods, particularly during the summer months. who served during 1974 were Robert S. Dohner (Harvard University) and M. Cary Leahey (Clark University).

Interns

Consultants who provided services to the Council during 1974 included Richard N. Cooper (Yale University), Sidney Cottle (FRS Associates), Otto Eckstein (Harvard University), Gottfried Haberler (American Enterprise Institute), Gabriel Hauge (Manufacturers Hanover Trust Company), Walter W. Heller (University of Minnesota), Hendrik S. Houthakker (Harvard University), Paul W. McCracken (University of Michigan), Allan Meltzer (Carnegie Mellon University), Robert A. Mundell (Columbia University), Arthur M. Okun (The Brookings Institution). George L. Perry (The Brookings Institution), Paul Samuelson (Massachusetts Institute of Technology), W. Allen Wallis