It is with regret that I accept your resignation as Chairman of the Council of Economic Advisers, effective July 10, 1984.

In agreeing to come to Washington at my request, you were required to interrupt a distinguished academic career, and I can understand the necessity that impels you to return to Harvard this summer. During the past two years, you have given me the benefit of your great knowledge and experience, and I want to thank you personally for the job you have done.

I know that you share my belief that we must return to the wisdom of the free market in determining the allocation of our nation's human and material resources. You have worked with great dedication for this goal while serving in my Administration, and I am certain you will continue to do so as you return to academic life.

Nancy and I send you our best wishes for every future success and happiness.

Sincerely,

Ronald Reagan

[The Honorable Martin Feldstein, Chairman, Council of Economic Advisers, The White House, Washington, D.C. 20500]

o o o o May 8, 1984

Dear Mr. President:

As I told you when you first asked me to serve as Chairman of the Council of Economic Advisers, Harvard University has an absolutely inflexible rule limiting leaves of absence to two years. In order to have adequate time to prepare for my teaching before the September term begins, I would like to leave my position on July 10th. By that date I will have completed my work for the midsession budget review.

Although I look forward to my return to research and teaching, I am very sorry that I cannot stay for another year to work with you on your post-election economic program. I would be pleased to help you and my successor and other members of the Administration in any way that I can.

It has been a great honor for me to serve as Chairman of your Council of Economic Advisers and a great pleasure to be able to work closely with you. In the past three years, you have changed the course of America's economic history. Inflation is down sharply and monetary policy is following a course that should prevent a return to increasing inflation. The reduction in government domestic spending that you have achieved distinguishes your Administration from any that has come before. The 1981 Tax Act not only reduced high distortionary tax rates but specifically strengthened incentives for saving and investment.

All of these accomplishments reflect your personal vision of a good society: low inflation, a less intrusive government, less burdensome taxation, and maximum scope for the potential contribution of the free market. I am proud to have been associated with you in your pursuit of these economic goals.

I know that the achievements of your first term will be preserved and extended in your next four years. Thank you for giving me the opportunity to work with you and thank you for all that you are doing for our country.

Sincerely,

Martin

Martin Feldstein

[The President, The White House, Washington, D.C.]