The Fed’s mandates are rooted in endless fallacy, most prominently the discredited Phillips Curve which says economic growth causes prices to rise. Please keep this in mind as monetary policy grandees pen high-toned pieces musing about what the next Fed Chairman should think about, and do.
All it takes to see the foolishness of everything central-bank related is to contemplate the Fed’s “price stability” mandate. While thinking about it, perhaps Google “I, Pencil” to see the myriad global inputs that go into the making of something so prosaic.
Read the full article on Forbes.
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John Tamny is Founder and President of the Parkview Institute, editor of RealClearMarkets, senior fellow at the Market Institute, and Senior Economic Adviser to mutual fund firm Applied Finance Group. Tamny is the author of eight books. His latest is The Deficit Delusion: Why Everything Left, Right and Supply-Side Tell You About the National Debt Is Wrong. His others are Bringing Adam Smith Into the American Home: A Case Against Home Ownership, The Money Confusion, When Politicians Panicked: The New Coronavirus, Expert Opinion, and a Tragic Lapse of Reason, Popular Economics, Who Needs the Fed?, The End of Work, and They're Both Wrong: A Policy Guide for America's Frustrated Independent Thinkers.
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