President Reagan plans to nominate Assistant Treasury Secretary Manuel H. Johnson and Wayne D. Angell, a Kansas banker, economist, farmer and politician, to the Federal Reserve Board, the White House announced yesterday.
Angell, 55, is a professor of economics at Ottawa University in Kansas whose primary research has been in monetary policy and banking. He is chairman of the board of the First State Bank of Pleasanton, Kan. Since 1979, he has been on the board of the Kansas City Federal Reserve Bank.
Angell has a reputation as a monetarist -- an economist who believes that changes in the money supply are a major determinant of later changes in current-dollar gross national product and in prices -- but he disavows that and other economic labels as too simplistic.
Reagan will name Angell to complete the term of Lyle Gramley, who resigned effective Sept. 1. The term has nine years to run.
Johnson, an economist who was teaching at George Mason University in Virginia when he was appointed deputy assistant Treasury secretary in the first Reagan administration, will succeed Fed Governor J. Charles Partee when his 14-year term expires Jan. 31.
Johnson became assistant secretary in 1983 following the resignation of Paul Craig Roberts, an outspoken advocate of cutting taxes to create incentives for work, saving and investment. Johnson, who has been a strong advocate of administration policy, has kept a lower profile than Roberts and is well regarded by his colleagues.
Before Johnson joined Treasury, his research was in the area of "public choice" -- a specialty at George Mason focusing on how government spending decisions are made. At a conference last year, Johnson indicated that he believes the key to healthy economic growth in the United States is reducing or limiting increases in government spending rather than the way in which such spending is financed through taxes, borrowing or the creation of money by the Federal Reserve.
At Treasury, Johnson directed a controversial study whose conclusion was that economists generally had been unable to establish any systematic link between large federal budget deficits and interest rates.
Johnson has written that the Federal Reserve was largely responsible for the 1981-82 recession because it allowed a sharp slowing of growth in the money supply in 1981. "Budget deficits did not become a problem until the economy experienced a monetary shock and Congress reneged on further spending restraint," he wrote in 1983.