Purchase Fed independence

Defend Fed Independence. You Might Need It Someday.

Federal Reserve independence is on trial in Washington again. President Donald Trump’s top economic adviser, Larry Kudlow, broke with decades of economic orthodoxy on Tuesday when he agreed with the prominent supply-sider Arthur Laffer that Fed independence is undemocratic and that monetary policy should be handled by the Treasury Department or Congress.

And if Karl Smith would read a little history he would find we do, in fact, pay off Congress once a generation for a new independent Fed.

So, the goal, Karl, is to 1) Read history and decide that yes indeed the Laffers and Kudlows show up each and every generation. And, 2) they will buy another round of Fed independence by having the Fed default on behalf of Congress.

All I am saying is quit faking it, do not become another of those 'This time is different' economists.  Instead, try and figure out the value of 15 years of complete Fed independence, then be prepared to pay Congress that fee.