Supply-Side Forum

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Monday, August 07, 2006

Two new inflation articles.

At TCSDaily, Jerry Bower continues his argument against a major inflation indicated by gold.

And at the WS Journal, Martin Feldstein says the Fed should risk recession to get inflation under control.

3 Comments:

Blogger ebreen said...

Two flawed points of view. One says that a little inflation is ok because the markets are more flexible and deflation is even worse...how silly. The other, Harvard, says that a recession is OK to fight inflation...after all it has been the prescription of the past. The first opinion is just dumb and the second one is stuck in the justification of a wrong tool. Someone needs to stand up and say that the policy of government and all its agencies, including the Fed must be to promote growth. The phillips curve is imoral and it is wrong. It is the modern equivalent of Dr. Rush bleading the patriots. Growth cures inflation if the fed targets gold or some less efficient commodity/ price level target. Present interest rate target policy does not work and actually makes inflation worse as it harms the economy. Its like cutting off the arm rather than making a stitch.

7:26 PM  
Blogger David Wood said...

Exactly right, Ed. The Reagan administration proved the Phillips curve wrong with supply-side tax cuts which boomed the economy and cut inflation. Feldstein apparently didn't learn a thing.

It is agonizing to see them so consistently doing the wrong thing.

8:55 PM  
Anonymous judith said...

Meanwhile, we (seemingly) voices in the wilderness have to read this nonsense by 'big names' in so-called responsible mass media publications.
I still have trouble accepting that most people agree with this stupidity.
Yes..... we really need someone to stand up and be heard!

10:56 AM  

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