I wish more journalists who write about the Federal Reserve would read Gary Stern’s columns. They would gain insights that might keep them from egregious misinterpretations of monetary policy after Federal Open Market Committee meetings such as the one this…
Category: Other
How many Fed branches do we need?
Restructuring public institutions in the face of changing needs is hard. Politics are such that abolishing an existing government institution is nigh impossible. In sharply reducing its check-processing infrastructure, the Federal Reserve seems an exception to that general rule. The…
Economists, politicians differ over tax breaks
When government monetarily encourages some activity, is it better to write checks to those we wish to motivate or should they get special tax treatment? Gov. Tim Pawlenty recently proposed assorted benefits for members of the Minnesota National Guard. These…
Rules are rules, even in trade fights
Consider alternative responses to this familiar parental challenge: “Daddy, Daddy, Joey hit me!” Should the parent respond, a) “Joey, go to your room right now!” or b) “Then you hit Joey right back!” Now think about international trade disputes rather…
Comparing U.S., Canada can be instructive
One can only hope that on his trip to Canada this week, President Bush kept his mind open to lessons from comparing the United States with that nation. There are few better ways to gain useful insights than by comparing…
Don’t believe the hype about dollar’s swings
As a columnist who occasionally is tempted to use inflammatory rhetoric, I should not be too critical. Still, the words that journalists and politicians choose to describe exchange rate movements often are misleadingly overwrought. Take market reactions to U.S. election…
Reflect on wants versus needs
While many economists study the sorts of things that most people think of as “economics” — inflation, unemployment, international trade — others delve into topics that seem to stretch the assumed limits of the discipline. The economics of holidays is…
Cutting waste is easier said than done
A recent argument in this newspaper about the Milk Income Loss Compensation program is a case study in the difficulty of cutting wasteful spending. Many believe that much federal spending is unnecessary. Few, however, can agree on exactly what to…
“Full employment” is hard to quantify
What is full employment and how will we know when we have it? That question arose in response to Tuesday’s news that the number of Minnesotans with jobs had increased and that the unemployment rate had decreased. That is good…
“Free trade” not that free under treaties
My son would love last week’s news report about the popularity of Mexican-made Coca-Cola in some U.S. specialty stores. Having spent several summer study terms in Mexico, he is quick to assert that Mexican Coke, which is made with sugar…