Should the Federal Reserve Set its Own Goals?
“A target that is not determined solely by the Federal Reserve is less subject to changes solely due to deliberations at the Federal Reserve. It will enhance monetary policy’s effectiveness.” ~ Gerald P. Dwyer
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The Progressive Left and the Push to Reset the Federal Reserve’s Legal Mandates
“It is puzzling why former Federal Reserve officials have not vocally denounced these developments for what they are: a direct attack on capitalism, free market driven investment, and Federal Reserve independence.” ~ Paul H. Kupiec
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Price Stability and the Fed
“Politics is compromise. Half a loaf is better than no loaf at all. Price stability is the half-loaf of monetary policy rules. It seems foolish to go hungry simply because haute cuisine is unaffordable.” ~ Alexander William Salter
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There Are Good Reasons for Monetary Rules
“A good monetary rule does not only identify an appropriate course of action in advance. It also requires monetary policymakers to take that course and, in doing so, reduces the uncertainty businesses and consumers face.” ~ Nicolás Cachanosky
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A Simple Guide for Aggregate Demand Management
“We’ve advanced little beyond the classical-liberal prescriptions of free markets, sound money, and peace. ‘Keep it simple, stupid,’ is good enough for government work.” ~ Alexander William Salter
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Should the Fed Stimulate Growth?
“Rather than consider whether the Fed should stimulate growth, we should recognize that its primary task is to prevent over- and under-production.” ~ William J. Luther
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The Fed’s Share of Public Debt: Worsening Withdrawal Symptoms?
“Can Congress quit the Fed’s easy money policy that has allowed them to push debt levels well above 100% of GDP, or will the addiction demand more QE to support Washington’s spending habit?” ~ Peter T. Calcagno & Edward J. Lopez
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Monetarism Remains a Useful Guide on Inflation
“If the Federal Reserve raises interest rates too quickly, sharply declining M2 growth will signal the risk of recession. Monitoring M2 growth can help in making sure the Fed tightens monetary policy at the appropriate pace, not too fast and not too slow.” ~ Peter N. Ireland
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Inflation, Unemployment, and Fed Credibility
“Any time it looks like there’s a tradeoff between unemployment and inflation, something has gone very wrong. We could’ve avoided both horns of the dilemma if the Fed had done its job.” ~ Alexander William Salter
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Hollywood’s Monetary Policy
“What is fact versus fiction in this story? While we should surely be wary of Fed-induced risk taking and credit misallocation, I’m skeptical that this was a major problem in the QE period.” ~ Thomas L. Hogan
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Strike Three for the Federal Reserve
“No batter always gets on base but America, nay the world, has a high-quality pinch hitter that it benched a century ago: the Gold Standard. It’s not perfect but it is far better, and fairer, than the Fed.” ~ Robert E. Wright
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Better Explanations for Inflation
“We have enough information to conclude policy mistakes, especially on the demand side, go a long way toward explaining today’s inflation.” ~ Alexander William Salter
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