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Why Stabilization Policy is Destabilizing

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Tags The FedInflationMonetary PolicyU.S. Economy

09/28/2023Jonathan Newman

The call for "price stabilization" was part of the recent Republican debate. Despite its attractive appearance, having the Fed try to "stabilize prices" is a very bad idea.

 

Original Article: Why Stabilization Policy is Destabilizing

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Contact Jonathan Newman

Dr. Jonathan Newman is a Fellow at the Mises Institute. He earned his PhD at Auburn University while a Research Fellow at the Mises Institute. He was the recipient of the 2021 Gary G. Schlarbaum Award to a Promising Young Scholar for Excellence in Research and Teaching. Previously, he was Associate Professor of Economics and Finance at Bryan College. He has published in the Quarterly Journal of Austrian Economics and in volumes edited by Matthew McCaffrey and Per Bylund. His research focuses on Austrian economics, inflation and business cycles, and the history of economic thought. He has taught courses on Macroeconomics and Quantitative Economics: Uses and Limitations in the Mises Graduate School. He is the author of two children's books: The Broken Window and Ludwig the BuilderHis commentary appears regularly in the Mises Wire and Power & Market.

Original Article: 
Why Stabilization Policy is Destabilizing