Focus on Monetary Policy and Inflation

Focus on Monetary Policy and Inflation

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A June 2 report from Morgan Stanley examined the Treasury bond market after the Federal Reserve ends its policy of quantitative easing. It anticipates that foreign purchases will become even more important than they already are.

On June 1, Federal Reserve Bank of New York economist Gauti Eggertsson posted a commentary  regarding the Federal Reserve’s premature tightening of monetary policy in 1937 that contributed to a sharp recession.

A May 23 study by the Federal Reserve Bank of San Francisco found that peoples’ expectations of future inflation are excessively influenced by volatile food and energy prices.

In a May 18 speech Federal Reserve Bank of St. Louis president James Bullard argued that the Fed’s focus on “core inflation,” which excludes volatile food and energy prices, is wrong and that it ought to focus on the standard measure of inflation in setting policy.

A May 12 working paper from the Federal Reserve Board argues that the Fed has exactly followed the policies of the late economist Milton Friedman during the recent crisis.

On May 11, the House Committee on Financial Services held a hearing on the relationship between the federal debt and Federal Reserve policy.

A May 9 Economist/YouGov poll found very little public support for the Federal Reserve.

A May 4 study from the Federal Reserve Bank of Boston examined the effect of rising commodity prices on the overall inflation rate. It finds that the overall rate mainly reacts to changes in wages rather than commodities.

A May 3 study from the Federal Reserve Bank of Dallas examined food price inflation. It finds that the degree of processing is significant.

I last posted items on this topic on May 3.

Bruce Bartlett is an American historian and columnist who focuses on the intersection between politics and economics. He blogs daily and writes a weekly column at The Fiscal Times. Bartlett has written for Forbes Magazine and Creators Syndicate, and his work is informed by many years in government, including as a senior policy analyst in the Reagan White House. He is the author of seven books including the New York Times best-seller, Imposter: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy (Doubleday, 2006).

Bruce Bartlett’s columns focus on the intersection of politics and economics. The author of seven books, he worked in government for many years and was senior policy analyst in the Reagan White House.