Treasury Aide to Head Reagan Economic Panel

President Reagan announced today that he is nominating Beryl W. Sprinkel, undersecretary of the Treasury, to be chairman of a more active Council of Economic Advisers.

Deputy press secretary Larry Speakes said that Reagan, in nominating Sprinkel, “is seeking to revitalize the Council of Economic Advisers.” He said Reagan intends to fill out the council to its fullest by rounding out its membership and staff.

Sprinkel would succeed Martin S. Feldstein, the controversial council chairman who resigned last July to return to teaching economics at Harvard University. Feldstein ran afoul of many Reagan officials for airing his disputes with the Administration in public.

Sprinkel, 61, has been described as a monetarist economist--one who believes that changes in the money supply dictate changes in the economy. He also has been the prime supporter of a policy opposed to manipulation of foreign exchange markets to change the value of the dollar.

Source of Criticism

Sprinkel was the source of much of Treasury Secretary Donald T. Regan’s criticisms of the Federal Reserve’s alleged erratic performance and is considered the Administration’s top “Fed-watcher.”

Reagan had toyed with the idea of abolishing the economic council but has decided to continue the operation even though he has displayed less and less patience with economists and their predictions.

William A. Niskanen Jr., who has been acting as head of the council, had served notice that he would not remain on the panel unless chosen as chairman.