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In the next Two Years, Congress
should:
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Long-term
Goals:
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- uphold its constitutional duty to
maintain the purchasing power of the dollar by enacting
legislation that makes long-run
price stability the primary
objective of Federal Reserve monetary policy;
- recognize that the Fed cannot
fine-tune the real economy but can achieve monetary stability by
following a rule that confines nominal growth of gross domestic
product to a noninflationary path;
- recognize that all prices
should naturally be going down, and hold the Fed accountable
for achieving zero expected inflation over a reasonable time
frame;
- pass the Honest
Money Act.
- abolish the Exchange Stabilization
Fund, since the Fed’s role is to achieve zero inflation, not
to stabilize the foreign exchange value of the dollar by
intervening in the foreign exchange market; and
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- offer no resistance to the emergence
of digital currency and other substitutes for Federal Reserve
notes, so that free-market forces can help shape the future of
monetary institutions.
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- A Guide to
Digital Cash Articles
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The
Limits of Monetary Policy
next: Financial Deregulation
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