Lauchlin Bernard Currie

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Lauchlin Bernard Currie (October 8, 1902 – December 23, 1993) was a Canadian-born American economist who played a significant role in U.S. economic policy during the New Deal and World War II, particularly as an early advocate of Keynesian fiscal policy. He later became a prominent economic advisor in Colombia, where he spent the latter half of his life. Currie's career was marked by intellectual brilliance, policy influence, and later, controversy due to accusations of communist sympathies during the McCarthy era, which ultimately led to his expatriation.

Early Life and Education
Early Career and Academic Work
New Deal and Wartime Service
3.1. Federal Reserve Board
3.2. White House Economic Advisor
3.3. Advocacy of Keynesian Policies
3.4. Wartime Missions and Post-War Planning
Accusations and Expatriation
Career in Colombia
5.1. Economic Advisor and Development Planner
5.2. "Operation Colombia" and Development Strategy
5.3. Academic and Public Intellectual Role
Economic Ideas and Contributions
6.1. Early Keynesianism
6.2. Monetary Policy and Central Banking
6.3. Development Economics
Influence and Legacy
List of Major Works and Reports
See Also

Lauchlin Currie was born in West Dublin, Nova Scotia, Canada. He initially studied at St. Francis Xavier University in Nova Scotia before moving to England to attend the London School of Economics (LSE). At LSE, he was exposed to leading economists and emerging economic ideas. He then moved to the United States to pursue doctoral studies at Harvard University, where he received his Ph.D. in economics in 1931. His dissertation, "Bank Assets and Banking Theory," reflected his early interest in monetary economics. At Harvard, he was part of a vibrant intellectual environment that included future influential economists and policymakers.

After completing his Ph.D., Currie taught economics at Harvard University as an instructor from 1929 to 1934. During this period, he focused on monetary theory and policy. He was among a group of younger economists at Harvard (sometimes referred to as the "Harvard Keynesians," though some of his ideas predated full Keynesian conversion) who were critical of classical economic orthodoxy and were exploring new approaches to understanding and managing economic fluctuations, particularly in the context of the Great Depression. His early work emphasized the role of bank credit and monetary policy in economic stability.

Currie's sharp intellect and innovative ideas brought him to Washington, D.C., where he became an influential figure in President Franklin D. Roosevelt's administration.

In 1934, Currie joined the staff of the Federal Reserve Board as an assistant director of research and statistics, working under Marriner Eccles, the Chairman of the Federal Reserve. He played a key role in shaping monetary policy and advocating for reforms to the Federal Reserve System. He argued for a more active role for the central bank in managing the money supply and influencing credit conditions to combat the Depression.

In 1939, Currie became the first full-time professional economist to serve as a White House administrative assistant to the President. In this capacity, he was one of President Roosevelt's closest economic advisors. He had significant influence on economic policy formulation, particularly concerning fiscal policy and war mobilization.

Currie was one ofthe earliest and most forceful advocates within the U.S. government for the application of Keynesian fiscal policy to combat the Great Depression.

Even before the publication of John Maynard Keynes's The General Theory of Employment, Interest and Money (1936), Currie was arguing for compensatory fiscal policy – the idea that the government should use deficit spending during recessions to stimulate aggregate demand and increase spending during booms to curb inflation.
He played a crucial role in persuading President Roosevelt and other policymakers of the need for increased government spending to achieve full employment, particularly as the economy faltered in the recession of 1937-38.
His memoranda and policy advice were instrumental in shifting U.S. fiscal policy towards a more expansionary stance.

During World War II, Currie was heavily involved in economic mobilization efforts.

He undertook important diplomatic and economic missions, including a mission to China in 1941 to assess its economic needs and coordinate aid.
He was involved in discussions about post-war international economic reconstruction, including the planning for the Bretton Woods institutions (the International Monetary Fund and the World Bank). He left government service in 1945.

Currie's career in the United States was abruptly curtailed by the anti-communist hysteria of the McCarthy era.

In 1948, Elizabeth Bentley, a former Soviet spy, named Currie as having provided information to Soviet intelligence networks during his time in government. Similar accusations were made by Whittaker Chambers.
Currie vehemently denied these allegations, testifying before the House Un-American Activities Committee (HUAC) and other investigative bodies. No charges were ever brought against him, and the evidence presented was often circumstantial or based on the testimony of defectors whose credibility was debated.
However, the accusations severely damaged his reputation and career prospects in the U.S. Facing intense scrutiny and unable to secure suitable employment, Currie left the United States.
In 1954, while he was living and working abroad, his U.S. citizenship was revoked on a technicality (related to his time spent outside the country), a decision many saw as politically motivated.

In 1949, Currie was invited by the World Bank to lead a comprehensive economic survey mission to Colombia. This marked the beginning of a new phase in his career, where he became a leading figure in Colombian economic development.

The mission's report, "The Basis of a Development Program for Colombia" (often called the "Currie Report," 1950), became a landmark document in development planning.

Currie chose to remain in Colombia and became a highly influential economic advisor to successive Colombian governments for several decades.

He played a key role in establishing Colombia's National Planning Department.
He advocated for policies aimed at promoting industrialization, agricultural modernization, and export diversification.

In the early 1960s, Currie developed an ambitious national development strategy known as "Operación Colombia." This plan emphasized:

Urban-led growth: Focusing on developing major cities as engines of economic growth and employment, attracting rural populations.
Construction as a leading sector: Promoting large-scale housing and infrastructure construction to stimulate demand and create jobs.
Export promotion and import substitution: A balanced approach to international trade.
Monetary and fiscal policies to support growth: Ensuring adequate credit and public investment. While not fully implemented as originally conceived, elements of "Operation Colombia" influenced Colombian development policy for years.

Currie also taught at Colombian universities, including the Universidad de los Andes and the Universidad Nacional de Colombia. He continued to write extensively on economic development, monetary policy, and urban planning, becoming a respected public intellectual in his adopted country. He eventually became a Colombian citizen.

Currie was a pioneer in advocating for and implementing Keynesian-style fiscal policies in the United States, even before Keynes's ideas became mainstream. His emphasis on aggregate demand management through government spending was crucial during the New Deal.

His early work focused on the role of bank credit and the need for active monetary policy by the central bank to stabilize the economy. He contributed to the modernization of the Federal Reserve System.

In Colombia, Currie applied his economic expertise to the challenges of development.

He emphasized a "leading sector" strategy, focusing on identifying and promoting key sectors (like construction and export-oriented industries) that could drive overall economic growth.
He stressed the importance of integrated national planning and the need to address structural imbalances in developing economies.
His approach often involved a pragmatic mix of market mechanisms and state intervention.

Lauchlin Currie was a highly influential economist both in the United States during a critical period of economic crisis and reform, and later as a key architect of development strategy in Colombia.
His early advocacy for compensatory fiscal policy significantly impacted New Deal economic thinking.
His work at the Federal Reserve contributed to the evolution of modern central banking.
The "Currie Report" for Colombia became a model for comprehensive development planning missions by international organizations.
His career highlights the intersection of economic theory, policymaking, and political ideology. The accusations against him during the McCarthy era remain a controversial aspect of his life, illustrating the impact of Cold War politics on individuals.
In Colombia, he is remembered as a major figure who dedicated much of his life to the country's economic development.

Bank Assets and Banking Theory (1931) – His Ph.D. dissertation.
The Supply and Control of Money in the United States (1934) – An influential early work arguing for more active monetary management.
Numerous memoranda and policy papers written during his service at the Federal Reserve Board and the White House (many unpublished or in government archives).
"The Basis of a Development Program for Colombia" (1950, International Bank for Reconstruction and Development) – The "Currie Report," as head of the IBRD mission.
Accelerating Development: The Necessity and the Means (1966) – Reflecting his work in Colombia.
Obstacles to Development (1967)
The Role of Economic Advisers in Developing Countries (1981)
The Colombian Plan, 1971-74: A Test of the Leading Sector Strategy (1974, with others)
Lauchlin Currie: The Works of an Economist, 1902-1993 (published posthumously, edited by Roger J. Sandilands, 1999) – A collection of his key writings.

Keynesian economics
New Deal
Federal Reserve System
Development economics
Marriner Eccles
McCarthyism
Elizabeth Bentley
History of economic thought

Lauchlin Bernard Currie (October 8, 1902 – December 23, 1993) was a Canadian-born American economist who played a significant role in U.S. economic policy during the New Deal and World War II, particularly as an early advocate of Keynesian fiscal policy. He later became a prominent economic advisor in Colombia, where he spent the latter half of his life. Currie's career was marked by intellectual brilliance, policy influence, and later, controversy due to accusations of communist sympathies during the McCarthy era, which ultimately led to his expatriation.

Early Life and Education
Early Career and Academic Work
New Deal and Wartime Service
3.1. Federal Reserve Board
3.2. White House Economic Advisor
3.3. Advocacy of Keynesian Policies
3.4. Wartime Missions and Post-War Planning
Accusations and Expatriation
Career in Colombia
5.1. Economic Advisor and Development Planner
5.2. "Operation Colombia" and Development Strategy
5.3. Academic and Public Intellectual Role
Economic Ideas and Contributions
6.1. Early Keynesianism
6.2. Monetary Policy and Central Banking
6.3. Development Economics
Influence and Legacy
List of Major Works and Reports
See Also

Lauchlin Currie was born in West Dublin, Nova Scotia, Canada. He initially studied at St. Francis Xavier University in Nova Scotia before moving to England to attend the London School of Economics (LSE). At LSE, he was exposed to leading economists and emerging economic ideas. He then moved to the United States to pursue doctoral studies at Harvard University, where he received his Ph.D. in economics in 1931. His dissertation, "Bank Assets and Banking Theory," reflected his early interest in monetary economics. At Harvard, he was part of a vibrant intellectual environment that included future influential economists and policymakers.

After completing his Ph.D., Currie taught economics at Harvard University as an instructor from 1929 to 1934. During this period, he focused on monetary theory and policy. He was among a group of younger economists at Harvard (sometimes referred to as the "Harvard Keynesians," though some of his ideas predated full Keynesian conversion) who were critical of classical economic orthodoxy and were exploring new approaches to understanding and managing economic fluctuations, particularly in the context of the Great Depression. His early work emphasized the role of bank credit and monetary policy in economic stability.

Currie's sharp intellect and innovative ideas brought him to Washington, D.C., where he became an influential figure in President Franklin D. Roosevelt's administration.

In 1934, Currie joined the staff of the Federal Reserve Board as an assistant director of research and statistics, working under Marriner Eccles, the Chairman of the Federal Reserve. He played a key role in shaping monetary policy and advocating for reforms to the Federal Reserve System. He argued for a more active role for the central bank in managing the money supply and influencing credit conditions to combat the Depression.

In 1939, Currie became the first full-time professional economist to serve as a White House administrative assistant to the President. In this capacity, he was one of President Roosevelt's closest economic advisors. He had significant influence on economic policy formulation, particularly concerning fiscal policy and war mobilization.

Currie was one ofthe earliest and most forceful advocates within the U.S. government for the application of Keynesian fiscal policy to combat the Great Depression.

Even before the publication of John Maynard Keynes's The General Theory of Employment, Interest and Money (1936), Currie was arguing for compensatory fiscal policy – the idea that the government should use deficit spending during recessions to stimulate aggregate demand and increase spending during booms to curb inflation.
He played a crucial role in persuading President Roosevelt and other policymakers of the need for increased government spending to achieve full employment, particularly as the economy faltered in the recession of 1937-38.
His memoranda and policy advice were instrumental in shifting U.S. fiscal policy towards a more expansionary stance.

During World War II, Currie was heavily involved in economic mobilization efforts.

He undertook important diplomatic and economic missions, including a mission to China in 1941 to assess its economic needs and coordinate aid.
He was involved in discussions about post-war international economic reconstruction, including the planning for the Bretton Woods institutions (the International Monetary Fund and the World Bank). He left government service in 1945.

Currie's career in the United States was abruptly curtailed by the anti-communist hysteria of the McCarthy era.

In 1948, Elizabeth Bentley, a former Soviet spy, named Currie as having provided information to Soviet intelligence networks during his time in government. Similar accusations were made by Whittaker Chambers.
Currie vehemently denied these allegations, testifying before the House Un-American Activities Committee (HUAC) and other investigative bodies. No charges were ever brought against him, and the evidence presented was often circumstantial or based on the testimony of defectors whose credibility was debated.
However, the accusations severely damaged his reputation and career prospects in the U.S. Facing intense scrutiny and unable to secure suitable employment, Currie left the United States.
In 1954, while he was living and working abroad, his U.S. citizenship was revoked on a technicality (related to his time spent outside the country), a decision many saw as politically motivated.

In 1949, Currie was invited by the World Bank to lead a comprehensive economic survey mission to Colombia. This marked the beginning of a new phase in his career, where he became a leading figure in Colombian economic development.

The mission's report, "The Basis of a Development Program for Colombia" (often called the "Currie Report," 1950), became a landmark document in development planning.

Currie chose to remain in Colombia and became a highly influential economic advisor to successive Colombian governments for several decades.

He played a key role in establishing Colombia's National Planning Department.
He advocated for policies aimed at promoting industrialization, agricultural modernization, and export diversification.

In the early 1960s, Currie developed an ambitious national development strategy known as "Operación Colombia." This plan emphasized:

Urban-led growth: Focusing on developing major cities as engines of economic growth and employment, attracting rural populations.
Construction as a leading sector: Promoting large-scale housing and infrastructure construction to stimulate demand and create jobs.
Export promotion and import substitution: A balanced approach to international trade.
Monetary and fiscal policies to support growth: Ensuring adequate credit and public investment. While not fully implemented as originally conceived, elements of "Operation Colombia" influenced Colombian development policy for years.

Currie also taught at Colombian universities, including the Universidad de los Andes and the Universidad Nacional de Colombia. He continued to write extensively on economic development, monetary policy, and urban planning, becoming a respected public intellectual in his adopted country. He eventually became a Colombian citizen.

Currie was a pioneer in advocating for and implementing Keynesian-style fiscal policies in the United States, even before Keynes's ideas became mainstream. His emphasis on aggregate demand management through government spending was crucial during the New Deal.

His early work focused on the role of bank credit and the need for active monetary policy by the central bank to stabilize the economy. He contributed to the modernization of the Federal Reserve System.

In Colombia, Currie applied his economic expertise to the challenges of development.

He emphasized a "leading sector" strategy, focusing on identifying and promoting key sectors (like construction and export-oriented industries) that could drive overall economic growth.
He stressed the importance of integrated national planning and the need to address structural imbalances in developing economies.
His approach often involved a pragmatic mix of market mechanisms and state intervention.

Lauchlin Currie was a highly influential economist both in the United States during a critical period of economic crisis and reform, and later as a key architect of development strategy in Colombia.
His early advocacy for compensatory fiscal policy significantly impacted New Deal economic thinking.
His work at the Federal Reserve contributed to the evolution of modern central banking.
The "Currie Report" for Colombia became a model for comprehensive development planning missions by international organizations.
His career highlights the intersection of economic theory, policymaking, and political ideology. The accusations against him during the McCarthy era remain a controversial aspect of his life, illustrating the impact of Cold War politics on individuals.
In Colombia, he is remembered as a major figure who dedicated much of his life to the country's economic development.

Bank Assets and Banking Theory (1931) – His Ph.D. dissertation.
The Supply and Control of Money in the United States (1934) – An influential early work arguing for more active monetary management.
Numerous memoranda and policy papers written during his service at the Federal Reserve Board and the White House (many unpublished or in government archives).
"The Basis of a Development Program for Colombia" (1950, International Bank for Reconstruction and Development) – The "Currie Report," as head of the IBRD mission.
Accelerating Development: The Necessity and the Means (1966) – Reflecting his work in Colombia.
Obstacles to Development (1967)
The Role of Economic Advisers in Developing Countries (1981)
The Colombian Plan, 1971-74: A Test of the Leading Sector Strategy (1974, with others)
Lauchlin Currie: The Works of an Economist, 1902-1993 (published posthumously, edited by Roger J. Sandilands, 1999) – A collection of his key writings.

Keynesian economics
New Deal
Federal Reserve System
Development economics
Marriner Eccles
McCarthyism
Elizabeth Bentley
History of economic thought

Lauchlin Bernard Currie (October 8, 1902 – December 23, 1993) was a Canadian-born American economist who played a significant role in U.S. economic policy during the New Deal and World War II, particularly as an early advocate of Keynesian fiscal policy. He later became a prominent economic advisor in Colombia, where he spent the latter half of his life. Currie's career was marked by intellectual brilliance, policy influence, and later, controversy due to accusations of communist sympathies during the McCarthy era, which ultimately led to his expatriation.

Early Life and Education
Early Career and Academic Work
New Deal and Wartime Service
3.1. Federal Reserve Board
3.2. White House Economic Advisor
3.3. Advocacy of Keynesian Policies
3.4. Wartime Missions and Post-War Planning
Accusations and Expatriation
Career in Colombia
5.1. Economic Advisor and Development Planner
5.2. "Operation Colombia" and Development Strategy
5.3. Academic and Public Intellectual Role
Economic Ideas and Contributions
6.1. Early Keynesianism
6.2. Monetary Policy and Central Banking
6.3. Development Economics
Influence and Legacy
List of Major Works and Reports
See Also

Lauchlin Currie was born in West Dublin, Nova Scotia, Canada. He initially studied at St. Francis Xavier University in Nova Scotia before moving to England to attend the London School of Economics (LSE). At LSE, he was exposed to leading economists and emerging economic ideas. He then moved to the United States to pursue doctoral studies at Harvard University, where he received his Ph.D. in economics in 1931. His dissertation, "Bank Assets and Banking Theory," reflected his early interest in monetary economics. At Harvard, he was part of a vibrant intellectual environment that included future influential economists and policymakers.

After completing his Ph.D., Currie taught economics at Harvard University as an instructor from 1929 to 1934. During this period, he focused on monetary theory and policy. He was among a group of younger economists at Harvard (sometimes referred to as the "Harvard Keynesians," though some of his ideas predated full Keynesian conversion) who were critical of classical economic orthodoxy and were exploring new approaches to understanding and managing economic fluctuations, particularly in the context of the Great Depression. His early work emphasized the role of bank credit and monetary policy in economic stability.

Currie's sharp intellect and innovative ideas brought him to Washington, D.C., where he became an influential figure in President Franklin D. Roosevelt's administration.

In 1934, Currie joined the staff of the Federal Reserve Board as an assistant director of research and statistics, working under Marriner Eccles, the Chairman of the Federal Reserve. He played a key role in shaping monetary policy and advocating for reforms to the Federal Reserve System. He argued for a more active role for the central bank in managing the money supply and influencing credit conditions to combat the Depression.

In 1939, Currie became the first full-time professional economist to serve as a White House administrative assistant to the President. In this capacity, he was one of President Roosevelt's closest economic advisors. He had significant influence on economic policy formulation, particularly concerning fiscal policy and war mobilization.

Currie was one ofthe earliest and most forceful advocates within the U.S. government for the application of Keynesian fiscal policy to combat the Great Depression.

Even before the publication of John Maynard Keynes's The General Theory of Employment, Interest and Money (1936), Currie was arguing for compensatory fiscal policy – the idea that the government should use deficit spending during recessions to stimulate aggregate demand and increase spending during booms to curb inflation.
He played a crucial role in persuading President Roosevelt and other policymakers of the need for increased government spending to achieve full employment, particularly as the economy faltered in the recession of 1937-38.
His memoranda and policy advice were instrumental in shifting U.S. fiscal policy towards a more expansionary stance.

During World War II, Currie was heavily involved in economic mobilization efforts.

He undertook important diplomatic and economic missions, including a mission to China in 1941 to assess its economic needs and coordinate aid.
He was involved in discussions about post-war international economic reconstruction, including the planning for the Bretton Woods institutions (the International Monetary Fund and the World Bank). He left government service in 1945.

Currie's career in the United States was abruptly curtailed by the anti-communist hysteria of the McCarthy era.

In 1948, Elizabeth Bentley, a former Soviet spy, named Currie as having provided information to Soviet intelligence networks during his time in government. Similar accusations were made by Whittaker Chambers.
Currie vehemently denied these allegations, testifying before the House Un-American Activities Committee (HUAC) and other investigative bodies. No charges were ever brought against him, and the evidence presented was often circumstantial or based on the testimony of defectors whose credibility was debated.
However, the accusations severely damaged his reputation and career prospects in the U.S. Facing intense scrutiny and unable to secure suitable employment, Currie left the United States.
In 1954, while he was living and working abroad, his U.S. citizenship was revoked on a technicality (related to his time spent outside the country), a decision many saw as politically motivated.

In 1949, Currie was invited by the World Bank to lead a comprehensive economic survey mission to Colombia. This marked the beginning of a new phase in his career, where he became a leading figure in Colombian economic development.

The mission's report, "The Basis of a Development Program for Colombia" (often called the "Currie Report," 1950), became a landmark document in development planning.

Currie chose to remain in Colombia and became a highly influential economic advisor to successive Colombian governments for several decades.

He played a key role in establishing Colombia's National Planning Department.
He advocated for policies aimed at promoting industrialization, agricultural modernization, and export diversification.

In the early 1960s, Currie developed an ambitious national development strategy known as "Operación Colombia." This plan emphasized:

Urban-led growth: Focusing on developing major cities as engines of economic growth and employment, attracting rural populations.
Construction as a leading sector: Promoting large-scale housing and infrastructure construction to stimulate demand and create jobs.
Export promotion and import substitution: A balanced approach to international trade.
Monetary and fiscal policies to support growth: Ensuring adequate credit and public investment. While not fully implemented as originally conceived, elements of "Operation Colombia" influenced Colombian development policy for years.

Currie also taught at Colombian universities, including the Universidad de los Andes and the Universidad Nacional de Colombia. He continued to write extensively on economic development, monetary policy, and urban planning, becoming a respected public intellectual in his adopted country. He eventually became a Colombian citizen.

Currie was a pioneer in advocating for and implementing Keynesian-style fiscal policies in the United States, even before Keynes's ideas became mainstream. His emphasis on aggregate demand management through government spending was crucial during the New Deal.

His early work focused on the role of bank credit and the need for active monetary policy by the central bank to stabilize the economy. He contributed to the modernization of the Federal Reserve System.

In Colombia, Currie applied his economic expertise to the challenges of development.

He emphasized a "leading sector" strategy, focusing on identifying and promoting key sectors (like construction and export-oriented industries) that could drive overall economic growth.
He stressed the importance of integrated national planning and the need to address structural imbalances in developing economies.
His approach often involved a pragmatic mix of market mechanisms and state intervention.

Lauchlin Currie was a highly influential economist both in the United States during a critical period of economic crisis and reform, and later as a key architect of development strategy in Colombia.
His early advocacy for compensatory fiscal policy significantly impacted New Deal economic thinking.
His work at the Federal Reserve contributed to the evolution of modern central banking.
The "Currie Report" for Colombia became a model for comprehensive development planning missions by international organizations.
His career highlights the intersection of economic theory, policymaking, and political ideology. The accusations against him during the McCarthy era remain a controversial aspect of his life, illustrating the impact of Cold War politics on individuals.
In Colombia, he is remembered as a major figure who dedicated much of his life to the country's economic development.

Bank Assets and Banking Theory (1931) – His Ph.D. dissertation.
The Supply and Control of Money in the United States (1934) – An influential early work arguing for more active monetary management.
Numerous memoranda and policy papers written during his service at the Federal Reserve Board and the White House (many unpublished or in government archives).
"The Basis of a Development Program for Colombia" (1950, International Bank for Reconstruction and Development) – The "Currie Report," as head of the IBRD mission.
Accelerating Development: The Necessity and the Means (1966) – Reflecting his work in Colombia.
Obstacles to Development (1967)
The Role of Economic Advisers in Developing Countries (1981)
The Colombian Plan, 1971-74: A Test of the Leading Sector Strategy (1974, with others)
Lauchlin Currie: The Works of an Economist, 1902-1993 (published posthumously, edited by Roger J. Sandilands, 1999) – A collection of his key writings.

Keynesian economics
New Deal
Federal Reserve System
Development economics
Marriner Eccles
McCarthyism
Elizabeth Bentley
History of economic thought