One Song, Two Graphs and the Fed’s Dual Mandate

Because the Congress established a dual mandate of high employment and price stability for the Federal Reserve’s monetary policy, they created a dilemma.

When Did We Get “Tough Love” From the Federal Reserve?

Demonstrating Russia’s current plight, this graph so perfectly illustrates stagflation: When GDP sinks and inflation increases, the stagflation that results is tough to cure. If monetary authorities target inflation with tight monetary policy, then interest rates go up and further…

Double Dips

We do not know whether a double dip has begun. Cascading during 2008 and the first half of 2009, the GDP then began to climb. Only if it drops again will we have a double dip. In the NY Times,…