“The Fed’s Bipolar Mandate”
“The contradictions were as apparent then as now; as Mr. Corker puts it, a central bank cannot have “a bipolar mandate.” The pressure to bring down unemployment using money creation during difficult economic times will inevitably complicate the task of maintaining stable prices. As the Fed pushes money out the door, whether or not there is an economic demand for more dollars, there will be an illusion in the short-run that people are better off. But the longer-term effect may be inflationary as too much money chases too few goods. The U.S. spent the end of the 1970s and early 1980s digging out of the mess created by the Fed’s effort to boost job creation by printing money.” Read more.
“The Fed’s Bipolar Mandate”
Opinion
Wall Street Journal, November 20, 2010.
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