Citation :
Even if you believe that inflation was transitory, the thing to do was to act as if it was not and act quickly.
To break the back of inflation, there's only one path, and it's a painful one, which is you got to put your economy into a deep and long recession.
FED has limited power, and that's the other thing to recognize. The only power FED has is to make things so painful that the economy, in a sense, shuts down. That's the power it has.
It's not the power to change inflation rates or change interest rates.
|