A slightly off-center perspective on monetary problems.
Dr. Copper: We need the Fed to aggressively ease monetary policy.
Mr. Gold: I don’t know what you are talking about, they should raise rates now.
Dr. Copper: But NGDP has only increased 4% in three years; normally it would rise at least 15% over that time span.
Mr. Gold: But the Fed’s mandate isn’t NGDP, it’s an inflation targeter.
Dr. Copper: Actually, its mandate is stable prices and high employment. Unemployment is 9.1%.
Mr. Gold. But we all know the Fed can’t target employment in the long run, better to focus on 2% inflation.
Dr. Copper: But core inflation has been below 2% in recent years.
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