Links to Two Short Essays on Monetary Policy, One Good, One Bad

First, new FOMC member Neil Kashkari tells us why he dissented on this week's interest rate hike. It's a great essay. I laughed at "over the past five years, 100 percent of the medium-term inflation forecasts (midpoints) in the FOMC’s Summary of Economic Projections have been too high: We...

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A Quick Argument Why Not to Raise Interest Rates

I teach today, so this will be quick. Why am I opposed to raising interest rates?First, I should mention this is a debate which we've had before. When the Fed decided to leave it's balance sheet unchanged for all of 2009 and 2010 -- while the economy...

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