MEETING OF CABINET COUNCIL ON ECONOMIC AFFAIRS

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP85-01156R000100010021-3
Release Decision: 
RIPPUB
Original Classification: 
K
Document Page Count: 
2
Document Creation Date: 
December 21, 2016
Document Release Date: 
June 20, 2008
Sequence Number: 
21
Case Number: 
Publication Date: 
January 21, 1982
Content Type: 
MEMO
File: 
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PDF icon CIA-RDP85-01156R000100010021-3.pdf48.92 KB
Body: 
Approved For Release 2008/06/20: CIA-RDP85-01156R000100010021-3 National Intelligence Council DDI #510-82 21 January 1982 MEMORANDUM FOR: Director of Central Intelligence VIA: Chairman, National Intelligence Council FROM: Maurice C. Ernst National Intelligence Officer for Economics SUBJECT: Meeting of Cabinet Council on Economic Affairs 1. On 21 January I attended a meeting of the Cabinet Council on Economic Affairs at which two topics were discussed: (1) The degree of support of US international economic policies from our foreign friends; and (2) The US economic situation. 2. On'the international topic, Beryl Sprinkel of Treasury noted sub- stantial support in Europe for most US policies concerning the IMF and the World Bank. He also noted strong criticism of what our foreign friends perceive as excessively expansionary fiscal policies coupled with ex- cessively tight and erratic monetary policies, leading to high interest rates. The Europeans and Japanese, moreover, are less tolerant of sharp interest rate and exchange rate fluctuations and would prefer more US government intervention in both markets. 3. On domestic economic issues, Larry Kudlow of OMB gave a trenchant presentation on what is making the financial markets pessimistic and on the high risk of an aborted economic recovery if projected budget deficits are not reduced (see attached briefing outline). Attachment, As stated Approved For Release 2008/06/20: CIA-RDP85-01156R000100010021-3 Approved For Release 2008/06/20: CIA-RDP85-01156R000100010021-3 40 ? DDI #510-82 21 January 1982 SUBJECT: Meeting of Cabinet Council on Economic Affairs DCI/NIC/NIO/Econ:MErnst:bha(21 Jan 82) Distribution: Orig - Addressee 1 - DDCI 1 - 0/DCI/ExDir 1 - ER 1 - C/NIC 1 - O G I - 1 - DDI R r egis 2 - NI0/Econ Approved For Release 2008/06/20: CIA-RDP85-01156R000100010021-3