Fed discretionary activity must become a thing of the past.
Policy makers are no more capable of planning than politicians.
And this is not a secret, which is why we have a growing movement underway to remove the dual mandate ("maximum employment" / "stable prices").
That is, abandon non rule-based activity. Set a target for inflation, and that’s it. The free market will then decide who is to be employed.
Remain lender of last resort. Fine. But leave it at that.
John Taylor: "During the 1980s and 1990s, Fed officials rarely referred to the dual mandate (even in the early 1980s, with unemployment rates as high as today). When they did so, it was to make the point that achieving price stability was the surest way for monetary policy to keep unemployment down." Amen.
Now we have the absurd scenario of Wall St types trying to guess which spot on the curve the Fed will decide to buy, and, which spot to sell. This is truly a circus.
Robert Craven
Policy makers are no more capable of planning than politicians.
And this is not a secret, which is why we have a growing movement underway to remove the dual mandate ("maximum employment" / "stable prices").
That is, abandon non rule-based activity. Set a target for inflation, and that’s it. The free market will then decide who is to be employed.
Remain lender of last resort. Fine. But leave it at that.
John Taylor: "During the 1980s and 1990s, Fed officials rarely referred to the dual mandate (even in the early 1980s, with unemployment rates as high as today). When they did so, it was to make the point that achieving price stability was the surest way for monetary policy to keep unemployment down." Amen.
Now we have the absurd scenario of Wall St types trying to guess which spot on the curve the Fed will decide to buy, and, which spot to sell. This is truly a circus.
Robert Craven
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