Vision for America

Low Inflation

Currently the Federal Reserve is charged with the responsibility to maintain both low unemployment and inflation. This arrangement abdicates any economic responsibility to the Congress. This is wrong. Congress should be responsible for full employment through fiscal policy and the Federal Reserve should only be responsible for low inflation through monetary policy. The risks of inflation and the power of the Federal Reserve to deal lwith it have been poorly understood for several decades. This section shows that there is no correlation between the federal debt and inflation as well as discussing the powerful tools available to the Federal Reserve to combat inflation.