The Federal Reserve this week raised the Federal Funds Rate a quarter point to 1.25 percent, bringing the rate to the highest it's been in eight years. One might now say monetary policy has progressed from a policy of "ultra low" rates to simply a policy of low rates.
How this will play out over time continues to depend quite a bit on how much the Fed shrinks its balance sheet and how soon a recession descends on the economy.
Not surprisingly, then, many continue to discuss the best ways to reform the Federal Reserve. But, there's definitely a wrong way to do this.
This week on Mises Weekends: Arguments for a "rules based" Fed are gaining momentum on both the political Left and Right — and even among some libertarians. Would ideas like NGDP targeting and the "Taylor Rule" really make the Fed less dangerous? Would they be an improvement on the Fed's current discretionary approach? Can monetary rules" really contain booms and busts, or would Yellen and company simply break them at the first sign of the next crash? Professor Peter Klein joins Jeff to discuss How Not to Reform the Fed.
And in case you missed them, here are this weeks Mises Wire articles, covering a wide array of topics including: government backed monopoly and protectionism, crazy foreign policy, Mises's influence in the EU, deregulation of the airline industry, and does it really pay to get a college education anymore.
The Mises Institute works to advance the Austrian School of economics and the Misesian tradition, and defends the market economy, private property, sound money, and peaceful international relations, while opposing state intervention.