John Tamny, RealClearMarkets, explains, “Investment, not consumption, is the driver of economic growth. And investment is all about producers’ devising new ways to produce abundant goods and services at prices that continue to fall.” . . , And what of “money supply”? The latter is a consequence of economic activity, not Fed ease. Readers witnessed this up close in recent years amid the Fed’s feckless QE. Copious amounts of dollars were “created,” but with growth slight Stateside, those dollars rapidly migrated out of the U.S.
Peter Ireland, E21
Former Federal Reserve Chairman Paul Volcker passed away this week at age 92. Volcker will always be remembered as the man who acted, singlehandedly, to end America’s “Great Inflation” of the 1970s. When he arrived at the Federal Reserve Board in August 1979, inflation as measured by annual changes in the consumer price index was running at 12%. When he left in August 1987, inflation was down to just 4%. Read more here.... (Photo: Alex Wong/Getty Images)
Norman J. Ornstein | AEIdeas
The combination of intellect, integrity, drive, and commitment — along with decency, honor, and good humor — is rare and to be treasured and celebrated.
The death of Paul Volcker is a sad moment here at the Sun. The chairman of the Federal Reserve who, in the 1980s, conquered inflation slipped away Sunday after a long illness. Of all the public officials we covered over the decades, it is hard to think of one whom we admired more than Volcker and who will be more widely missed in America and abroad.