Tag: Inflation

Is The Federal Reserve The “Only Game In Town”? If So, How Effectively Can It Play Its Limited “Cards”?

October 2, 2025

“Cheap money can’t buy a strong economy” – R. Samuelson This posting argues that the monetary policy implemented by the Federal Reserve has limited influence on the level of employment in the economy.  First, here’s some background. A few years ago, Mohammed El-Erian, author of The Only Game in Town, argued that pressure was being … More Is The Federal Reserve The “Only Game In Town”? If So, How Effectively Can It Play Its Limited “Cards”?

Sustained Inflation: Is a Monetary Policy Response Needed?

March 7, 2023

In November 2021, after being a guest on Josh Dukelow’s Fresh Take program, I posted two related pieces:  one on whether inflation was temporary or not and a second on the role of monetary policy.  It’s time for an update, especially since the inflation rate has risen significantly since November 2021 (see the below chart) … More Sustained Inflation: Is a Monetary Policy Response Needed?