Friday, May 2, 2014

"The best guarantee of full employment and price stability" is... full employment and price stability


Comparing unemployment and inflation rates to Federal Reserve targets, Ed Dolan writes:

First, as market monetarists point out, the best guarantee of full employment and price stability over the long run is steady growth of nominal GDP in the range of 4 to 5 percent per year.

Comparing Irving Fisher's Debt-Deflation Theory of Great Depressions to Frank Herbert's Dune story, Geerussell writes:

Market monetarists would be the Guild Navigators, huffing spice and folding space to move from point A to point B avoiding everything in between.

That sums it up perfectly.

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