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The Fed alone cannot bring inflation down

admin by admin
February 27, 2023
in News


Financial Times/Claudia Sahm/2-23-2023

“Management of demand is not efficient in dealing with supply-driven price rises: fiscal policy must play its part.”

USAGOLD note: Sahm’s recommendations amount to more Keynesian sleight of hand and government intervention in the economy, as if the distortions already caused by these sorts of policies were not enough. We are reminded of Keynes’ comment towards the end of his life: “I find myself more and more relying for a solution of our problems on the invisible hand which I tried to eject from economic thinking twenty years ago.”

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