Re: fed mandate discussion

On 03 Jan 2008 20:05:33 +0000, Prof. P. Arestis wrote:
> Dear Warren,
>
(snip)
>
> One point is this: some more extreme people would argue that low inflation
> is both a necessary and sufficient condition for optimal longterm growth and
> employment.

Dear Philip,

Agreed, and we will soon see if the Fed leans in that direction, as
they professed repeatedly before Sept of this year as the way they
complied with their dual mandate of price stability and full
employment.

Seems hard to imagine a change to something like “full employment is a
necessary condition for low and stable prices” but I suppose anything
is possible!

All the best,

Warren

>
> Best wishes,
>
> Philip

Re: fiscal response

On 04 Jan 2008 22:29:03 +0000, Prof. P. Arestis wrote:
> Dear Warren,
>
> Many thanks.
>
> This is all interesting. The sentence that caught my eye is this: “A fiscal

> package is being discussed to day by Bernanke, Paulson, and Bush. That

> would also reduce the odds of a Fed cut”. This would indeed reduce the odds
> of a rate cut. But would Bernanke accept such a proposition when he
> believes passionately that crowding-out in fiscl policy is very much the
> order of the fiscal day? I am curious to see the result of this discussion.

Dear Philip,

Very good point!

Warren

>
> Best wishes,
>
> Philip
>


♥