[Peace-discuss] more wingnut economics, courtesy of Mike Pence

[Robert Naiman]

The "dual-mandate policy" that Pence is referring to is the legal
requirement that the Fed, in addition to caring about inflation, also
has to care about unemployment. Pence is saying that the Fed should
not be required to care about unemployment, and should give up caring
about it. Thus, the power of the Fed should be limited - limited from
caring about unemployment.

Welcome to Tea Party economics: the central bank should not be allowed
to care about unemployment.

Down, down with the Tea Party goldbugs. Long live the Keynesian Fed.

Pence's "argument" reminds me of the Tom Tomorrow cartoon where he
makes fun of right-wingers who argued that we should get rid of
welfare, because it has failed, because there are still poor people.
Right, he said. And we should get rid of the fire department, because
there are still fires.

---------- Forwarded message ----------
From: Mark Weisbrot
Date: Tue, Nov 16, 2010 at 7:23 PM
Subject: idiot statement of the week (month?)


“The Fed’s dual-mandate policy has failed,” Pence said. “For a record
18th straight month, the nation’s unemployment rate is at or above 9.4
percent. It’s time for the Fed to be solely focused on price stability
and not the recently announced QE2, which will monetize our debt and
trigger inflation.”

http://thehill.com/business-a-lobbying/129563-corker-pence-say-its-time-to-limit-the-fed


-- 
Robert Naiman
Policy Director
Just Foreign Policy
www.justforeignpolicy.org
naiman at justforeignpolicy.org

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