This is the 10 minute version of my longer post on central bank independence, for the Peterson Institute Conference on Central Bank Independence Oct 31
Seems convincing to me. I'm not an expert on monetary policy and its implications, but I've been appalled by the Fed's recent willingness to underwrite seemingly unlimited private-sector risk and public-sector profligacy. A reckoning must come, and the sooner the better.
Most of the inflation in 2021/22 was due to Trump’s recklessness with PPP along with Zoom class excess savings and supply chain disruptions. And then obviously on the energy side we had unprecedented weather events in TX/Louisiana beginning in August 2020 that disrupted energy supply and then Putin invaded Ukraine which spiked energy prices again. And because America is by far the biggest energy producer spikes in energy prices are no longer an economic negative like 2005-2008.
Useful reading! You mentioned that "An independent Fed, with a clear and limited mandate, has additional benefits. ...". My understanding are that those benefits are in terms of providing incentives for both the Fed and congress to draw a sharp line separating their responsibilities and policy-making abilities. Meanwhile, I find it interesting that this incentive is based on the plausibility for the two institutions to use each other as a "scapegoat" as in the scenarios you descrbed.
Seems convincing to me. I'm not an expert on monetary policy and its implications, but I've been appalled by the Fed's recent willingness to underwrite seemingly unlimited private-sector risk and public-sector profligacy. A reckoning must come, and the sooner the better.
Most of the inflation in 2021/22 was due to Trump’s recklessness with PPP along with Zoom class excess savings and supply chain disruptions. And then obviously on the energy side we had unprecedented weather events in TX/Louisiana beginning in August 2020 that disrupted energy supply and then Putin invaded Ukraine which spiked energy prices again. And because America is by far the biggest energy producer spikes in energy prices are no longer an economic negative like 2005-2008.
Useful reading! You mentioned that "An independent Fed, with a clear and limited mandate, has additional benefits. ...". My understanding are that those benefits are in terms of providing incentives for both the Fed and congress to draw a sharp line separating their responsibilities and policy-making abilities. Meanwhile, I find it interesting that this incentive is based on the plausibility for the two institutions to use each other as a "scapegoat" as in the scenarios you descrbed.