"About a half-century ago, my investment and economic mentor, Bradford F. Story, remarked that leaders at the Federal Reserve and Treasury would never succeed until they disabused themselves of the Phillips curve, which he called "a pretty idea with no grounding in reality."
It is thus disheartening to read Jason Furman's op-ed "Inflation and the Scariest Economics Paper of 2022" (Sept. 8). It is built on the unspoken assumption that policies relying on the veracity of the Phillips curve will determine the future course of U.S. inflation. The curve, which claims to model an inverse relationship between inflation and unemployment, has been disproved a dozen times. Yet it lives on in the minds of the Keynesians who dominate academia and government.
It isn't necessary to depress the economy and cause high unemployment to cure inflation. There are two primary economic factors, demand and supply, and that points to a solution for our inflation: Simply reverse the pandemic-driven policy of severely choking supply while simultaneously radically inflating demand.
Malcolm Clarke
Jamestown, R.I." [1]
1. Will the Phillips Curve Ever Be Put to Rest?
Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 13 Sep 2022: A.14.
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