News
WSJ | Fed Ponders Jobs, Inflation Targets
Federal Reserve officials, worried that a wobbly economy and their fractious debates are confusing the public, are examining whether to adopt more explicit economic targets to clarify their strategy for lowering unemployment without fueling inflation.
Bloomberg | Bernanke Tolerating Inflation to Revive Economy
Inflation flashing red may be less of a green light for higher interest rates as global growth falters.
Market Watch | Dollar extends gains to 1% on Greek default fears
The U.S. dollar rose versus most major rivals Monday, with the euro under renewed pressure as fears of a Greek debt default mounted.
CNN: Money | The Fed's unemployment hawks
The Fed's dual mandate to promote both maximum employment and price stability creates a natural conflict as policymakers debate the best action to stabilize the economy. But rarely in the central bank's history has that debate been so pronounced.
Econ Comments
NY Times | A Little Inflation Can Be a Dangerous Thing
My point is not that we are on the edge today of serious inflation, which is unlikely if the Fed remains vigilant.
Bloomberg | End the Fed's Dual Mandate And Focus on Prices: John B. Taylor
The dual mandate language is based on an outmoded concept of a tradeoff between inflation and unemployment. Moreover, too many goals blur responsibility and accountability. The dual goal enables politicians to lean on the Fed, and people often cite it as an excuse for unconventional policies.
