http://www.tvhe.co.nz/wp-content/uploads/logo-for-enfold-photoshop.png 0 0 Matt Nolan http://www.tvhe.co.nz/wp-content/uploads/logo-for-enfold-photoshop.png Matt Nolan2009-12-21 07:00:372009-12-15 15:11:58Monetary policy discussion in the US
Sounds like what we’ve been saying here. From over there:
- The Fed should have a single nominal target.
- The Fed needs to be transparent and have specific and well-defined monetary policy goals.
- The Fed should focus only on monetary policy, and regulation of the large banks.
From over here:
- At its heart, the consensus between the two main parties was to do with the target of monetary policy – monetary policy must be implemented by an independent Reserve Bank to ensure that inflation remains within a low and narrow band.
- Giving the Bank multiple instruments to simultaneously achieve multiple targets would be a recipe for confusion, and would ultimately damage its ability to achieve any of its targets
- Warping the Reserve Bank Act to focus on a multitude of different goals will not solve these underlying issues; it will just cloak the symptoms by damaging other sections of the economy