There’s No Good Reason for the Fed to Have an Inflation Target
By Jonathan Newman
> A market-selected commodity money enables economic growth without any inflation target to speak of. Markets are made up of individuals with their own values and plans.
Alexander Salter:
> The Fed’s job is to nudge dollar-denominated variables in the right direction. Monetary policy is much more like recalibrating the economy’s barometer than flooring the economy’s gas pedal.
> Of course, expansionary policy (printing money to purchase securities) can help fight recessions. […] It’s proper to grow the money supply in response to a sudden and unexpected increase in money demand.