(DOWNLOAD) "Alternatives to the Fed?(Federal Reserve) (Essay)" by The Cato Journal " eBook PDF Kindle ePub Free
eBook details
- Title: Alternatives to the Fed?(Federal Reserve) (Essay)
- Author : The Cato Journal
- Release Date : January 22, 2010
- Genre: Politics & Current Events,Books,
- Pages : * pages
- Size : 237 KB
Description
I must begin by saying that I have been extremely disappointed--the word "appalled" may be more accurate--by several developments over the last two years involving the Federal Reserve. It was, I believe, appropriate that the Fed would respond with expansionary monetary policy in the face of a major macroeconomic downturn, which it did. But it did not have to do so by means of operations that incorporated major excursions into credit policy, as well as monetary policy, and thereby into the unauthorized exercise of fiscal policy. (1) By engaging in such operations on a very large scale, the Fed's actions are almost certain to have detrimental effects on the Fed's independence--and thereby on its resulting ability to focus attention on what should be its principal objective, namely, price level stability. Furthermore, the Fed has not been moving quickly--if at all--to explain and correct this situation. All in all, the recent experience has had the effect of moving the Fed away from the type of policy behavior that mainstream academic analysts have been promoting over the past 15 years--namely, an activist but rule-based monetary stabilization policy that emphasizes the avoidance of significant inflation while 'also avoiding deflation. In saying this, I do recognize that the term "inflation targeting" has been gradually corrupted so as to permit excessive aspects of "fine tuning'" relating to output and employment levels, but by and large I believe that the academic literature has been mostly constructive and that much of the commentary tending to discredit it on the basis of recent events has done so mistakenly.
 "Alternatives to the Fed?(Federal Reserve) (Essay)" by The Cato Journal " eBook PDF Kindle ePub Free){kind=link}