http://www.cato-at-liberty.org/fed-cant-serve-two-masters/#utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CatoHomepageHeadlines+%28Cato+Headlines%29
While I was always taught that the Phillips curve is a woeful fantasy that has brought about significantly bad policy. It does beg the question, if stimulus isn't effectively increasing employment, and monetary policy CAN'T increase employment...what is the US to do about its most significant of economic woes?
I will develop this thought a bit more in the future, but consider this. Jobs are created when people engage the demand for products and services. Production expands, business start up and jobs are created...currently, there is insufficient domestic demand to support US production enough to increase jobs. Perhaps, then, one of the most globally linked economies in the world needs to focus on encouraging development elsewhere enough so that global demand bouys up policy.
By this I mean a foreign policy that is concerned about developing other countries...rather than fighting currency wars with them.
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