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Peter Schiff: Why The Dual Fed Mandate Doesn't Even Matter

Given the opposing views of the potentially parsimonious new Congress and the continuously accommodative Federal Reserve, there is a movement afoot among Republicans to eliminate the Fed's "dual mandate." Prior to 1977, the Fed only had one job: maintaining price stability. However, the stagflation of the 1970s inspired politicians to assign another task: promoting maximum employment. This "mission creep" has transformed the Fed from a monetary watchdog into an instrument of social policy. We would do well to give them back their original job.

The imposition of the "dual mandate" was informed by the Keynesian belief that inflation and unemployment don't mix. An economic concept known as the "Phillips curve" postulates that low levels of one cause high levels of the other. But, like many things in modern economics, the curve is a fiction. There is no real reason why low inflation would produce unemployment or full employment would create inflation.

Read more: http://www.businessinsider.com/debate-over-dual-mandate-2010...




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bump! its peter schiff, people!

when inflation is shovelled onto any economy, such as the Fed is currently doing by monetizing the u.s. debt, it is forced into every nook of the economy. Even, at length, the job market suffers under the rising prices, tightening bussinesses and commerce, and ever less potent wages

"ron paul is not running....ron paul is not running" -bloomberg 'expert' morning after the bloodbath, i mean, debate!