- Put Inflation Fears Aside - Mark Thoma
- Inflation Should Be Feared - John Cochrane
- There's Little the Fed Can Do - Edward Harrison
Personally I side with Edward Harrison's view that the Fed is ill-equipped to substantially reduce the unemployment rate. There currently appears little reason to fear inflation and Cochrane appears off-base with comparisons between the US and Greece. As for Thoma's policy suggestion, further attempts to stimulate consumption and investment through rising asset prices risks creating new asset bubbles and preventing the household deleveraging necessary for more sustainable growth. Our current troubles primarily stem from fiscal policy decisions and therefore it is the responsibility of Congress, not the Fed, to correct these issues.
(h/t Economist's View)