Boehner has it wrong

Speaking to the Economic Club of New York House Speaker John Boehner (R-OH) said: It’s true that allowing America to default would be irresponsible. But it would be more irresponsible to raise the debt limit without simultaneously taking dramatic steps to reduce spending and to reform the budget process. Wrong. Defaulting would be irresponsible.  It … Read more

Joe Queenan on core inflation

In a very entertaining piece in this weekend’s Wall Street Journal, Joe Queenen gripes about how economists measure inflation. He starts by lamenting the high cost of everything from gas, to bagels, to coffee.  “You can imagine my surprise,” he continues, “when the latest economic data came out and we were told that inflation wasn’t … Read more

Changing the rules at the FOMC

Representative Barney Frank (D-MA) has introduced a measure that would change the membership of the Federal Open Market Committee (FOMC), the group within the Federal Reserve that sets short-term interest rates by intervening in the federal funds market. The FOMC currently consists of the seven members of the Board of Governors of the Federal Reserve … Read more