Randomness

N. Gregory Mankiw wrote this interesting op-ed piece in Saturday’s New York Times. We’re going to have to look at all of the tools in our monetary arsenal to tackle the current crisis, and here Mankiw talks about ways you can continue to lower effective interest rates below zero using monetary (and other) policy. I personally prefer the option where the Fed pursues an inflationary policy over the one where we create new taxes on held currency but I haven’t studied the issue in detail. Check it out.

System Guardian Randomness economics, inflation, monetary policy