RICHMOND, Va. — Federal Reserveofficials regularly air their views in public speeches, but they rarely engage in public debates. On Tuesday night, two of the officials who disagree most sharply about the Fed’s current policy did just that.
The exchange between Charles L. Evans, an outspoken advocate for the Fed’s efforts to stimulate the economy, and Jeffrey M. Lacker, the Fed’s most persistent internal critic, suggested their differences are as much a matter of temperament as economics. Read more
Categories: Economics, United States
Money does not automatically increase in value. Evan’s righter than his counterpart. Reducing rates to stimulate the economy would result in inflation. But it would reduce the long-term inflation and not postpone the problem to the future.