i later, years later asked president johnson what he really thought of that episode. he said, "you know, andyl martin was right, but he should have told me about it ahead of time." the war, fought half a world away evespec ofmecan li omeoe titis. the ardonarpolicy significanwe inn, buon agrcost we askedomntatorrichargi o economistse ti w rtt wa ne policy?" certainly by the mid to late 1960s, everybody realized monetary policy was important. even in the old days most people realized that although you can't push on a string you could pull on one. in an economy beset by inflation the reverse links, reduced reserves to less money, to less spending to lower prices, worked well, perhaps too well. we might get not just lowered prices, but also lowered real gnp. and not just lowered real gnp in general, but higher interest rates and the collapse of interest-sensitive industries like housing and commercial construction. the crunch in the credit crunch of 1966 was for real. monetary policy, it seemed was a lot stronger tool than many had imagined. there was a general rethinking of the whole subject of