The American Spectator

Print Email

Text Size

The Spectacle Blog

Larry and Philip both completely misunderstand my point. There should be no confusion if the Fed does it right. Imagine you have two passengers in a car. One of them wants the driver to get there faster. The other one is worried about getting a speeding ticket. The driver tells them both: "Look, I have cruise control, and I have a CB radio where they tell me if there are any cops out. I am speeding up from 70 to 73. So I'll be going faster, but the cruise control will make sure I don't go TOO fast, and I'll slow down again at the first sign of trouble." That's not confusion, that's clarity -- the sort of clarity that satisfies both of them. That's what I am suggesting the Fed should do: Put the foot on the accelerator just a tiny bit, while announcing that its bias is in favor of slowing down again at the first sign of trouble. Why doesn't that make sense?