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In the next Two Years, Congress should:
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Long-term Goals:
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- uphold its constitutional duty to maintain the purchasing power of the dollar by enacting legislation that makes long-run price stability the primary objective of Federal Reserve monetary policy;
- recognize that the Fed cannot fine-tune the real economy but can achieve monetary stability by following a rule that confines nominal growth of gross domestic product to a noninflationary path;
- hold the Fed accountable for achieving zero expected inflation over a reasonable time frame;
- pass the Honest Money Act.
- abolish the Exchange Stabilization Fund, since the Fed’s role is to achieve zero inflation, not to stabilize the foreign exchange value of the dollar by intervening in the foreign exchange market; and
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- offer no resistance to the emergence of digital currency and other substitutes for Federal Reserve notes, so that free-market forces can help shape the future of monetary institutions.
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- A Guide to Digital Cash Articles
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The Limits of Monetary Policy
next: Financial Deregulation
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