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Home » Federal Reserve Still Wedded To Preposterous Phillips Curve — And May Make Foolish Decision Tomorrow
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Federal Reserve Still Wedded To Preposterous Phillips Curve — And May Make Foolish Decision Tomorrow

News RoomBy News RoomAugust 5, 20230 Views0
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The commercial and financial worlds are eagerly anticipating not only what the Federal Reserve will do with interest rates this week but also what hints it might drop about future moves.

What’s Ahead argues that this whole exercise is preposterous and dangerous. The Fed doesn’t “get” inflation. It mistakenly believes that prosperity causes this disease and that the way to fight it is by reducing the pace of economic activity. In other words, by making people poorer.

It’s a case of gross misdiagnosis. Real world experience shows the Fed’s view to be nonsense. Our central bank should instead focus on making the dollar stable. Only one presidential candidate is discussing this. The others must get up to speed.

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