My column for the February issue of
Research magazine is now online: "
Political Stand-Offs." Much of it is about monetary policy. Excerpt:
In last year’s presidential primaries, hopefuls including Mitt Romney
complained monetary policy was too loose. Rick Perry warned further
easing would be “almost treasonous.” Ron Paul’s push to “end the Fed”
was a keynote of his campaign, and Newt Gingrich praised Paul for being
“right about the Federal Reserve for 25 years.”
The politics have been shuffled somewhat by the Federal Reserve’s
stance, announced in December, of continuing bond purchases as long as
unemployment stays above 6.5% and inflation is projected at below 2.5%.
On one hand, such easing runs contrary to Republican calls for tight
money and fears of inflation. On the other hand, it jibes well with
another traditional Republican priority, for monetary policy to be more
rule-based and predictable.
Whole thing
here.
