ISSUE DATE: January 9, 1978; Vol. XCI, No. 2

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IN THIS ISSUE:-
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COVER: ECONOMY '78: A New Look? Miller for Burns at the Fed.

CARTER'S TRIP: President Carter was off on a nine-day hopscotching journey around the world last week. Critics labeled it a diversion from domestic problems, but the President hoped to use the trip to promote a Mideast peace and a meeting with Anwar Sadat was being discussed. A second story (page 28) examines the Israeli-Egyptian negotiations as they move into crucially important stage two.

MANHUNT: The Hillside Strangler has killed eleven young women in Los Angeles, police are baffled, and the city is scared. The manhunt's focus is on the sleazy street scene of Hollywood's Sunset Strip, where many of the victims lived and played.

STREETWISE: They sell everything from jewelry to jelly beans, play a variety of musical instruments --and often make themselves a tidy sum. Street peddlers and performers are as much a part of today's urban land- scape as traffic jams and park benches. A Newsweek color report describes the new street scene and the pressures that peddlers are under from stores and city hall.

A NEW LOOK ECONOMY: Jimmy Carter sacked a conservative icon, Arthur Bums, as chairman of the Federal Reserve Board, and replaced him with an unknown quantity: G. William Miller, head of Textron, Inc. The cover story examines Carter's plans for the 1978 economy, with a profile of the new Fed chairman. In an exclusive interview, Miller discusses his economic views. And Newsweek's Nobel laureate columnists, Milton Friedman and Paul Samuelson present analyses of the implications. (Cover photo by Wally McNamee--Newsweek.).

KNOLL'S PICKS: Woody and Diane hit the jackpot and Darth Vader became Public Enemy No. 1. Jack Kroll picks the year's best--and worst--movies.

CONTENTS LISTINGS:
NATIONAL AFFAIRS:
The President takes wing.
Defense Secretary Brown, a nimble juggler.
New York: now, Mayor Koch.
Alabama: the messy Wallace divorce.
Los Angeles: the strangler case..
The mystery of Israel's nuclear weapons.
INTERNATIONAL:
The Mideast: after lsmailia.
Begin's home-front critics.
A Japanese view on trade with the U.S.
Cambodia: a two-front war.
NATO's General Haig speaks out.
BUSINESS:
The Fed gets a new boss (the cover).
A profile of G. William Miller.
The cVwicman's thoughts.
Peddlers' gold in city streets.
LIFE/STYLE: The who's who's tower.
EDUCATION: What does a diploma mean?; DePauw's private peace corps.
MEDICINE: Ads for doctors: back to snake oil?; Clues in blood types.
THE COLUMNISTS:
My Turn: Angus S. King Jr.
Milton Friedman.
Paul A. Samuelson.
George F. Will.

THE ARTS:
TRANSITION: Charlie Chaplin, 1889-1977.
MOVIES: Best and worst of 1977.
ART: J.M.W. Turner's watercolors at the Detroit Institute of Arts.
BOOKS:
"Man: The Fallen Ape," by Branko Bokun.
Nigel Nicolson's "Mary Curzon".
Peter Dickinson's "Walking Dead".
THEATER: A masterful New York revival of O'Neill's "A Touch of the Poet".
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