I too attended yesterday's Peterson-Pew Commission on Budget Reform Policy Forum, and I highly recommend that you watch it for several reasons:
"Monetary policy has two basic goals: to promote "maximum" sustainable output and employment and to promote "stable" prices. These goals are prescribed in a 1977 amendment to the Federal Reserve Act." http://www.frbsf.org/publications/federalreserve/monetary/goals.html
Thomas Hoenig is right that political support for achieving "price stability and maximum sustainable long-term growth" will wane with 10% unemployment; happily, it is his job to fight that unemployment.
Also, is there any empirical data that suggests that returning tax rates to their 1990s levels (or even raising them a point or two higher than that) would harm growth? The experience of the 1990s suggests that slight changes in high tax brackets do not discourage or prevent growth.
Jim Kolbe never met a tax break for millionaires he didn't like. He voted for the unfunded wars on Terror while simultaneously voting on the Bush Tax cuts and bills to make them permanent. He voted for the unfunded medicare drug benefit, as well.
Now that he and his party have driven the economy into a ditch he wants to cut entitlements. What a surprise.
Investment advice: Buy stock in fancy feast.
More information about formatting options
Bio * Latest Posts
Bio * Latest Posts
Bio * Latest Posts
Bio * Latest Posts
Bio * Latest Posts
Amazon.com Widgets Read Us Your Way Track all the latest updates via RSS, Twitter or Facebook. Or get a daily digest of posts delivered straight to your inbox -- just sign up using the form below.E-mail Address:
Delivered by FeedBurner
Read Full Article »