Shouldn't economic policy be based on expert knowledge? Krugman isn't wrong (in his recent op-ed) that voters' hatred of increased gas prices could lead to the end of American Democracy.
What economic policies do you suggest are appropriate now, if we give up the idea of using interest rates as a macroeconomic tool?
Which experts? Bunch of experts are skeptical of austerity as approach but are drowned out in media. See links to Center for American Progress analyzing Economist poll above.
If corporate profiteering is significant part of problem, then giant windfall profits tax would deter raising prices unless actually justified by increased costs. Focusing on supply chain problems and helping get more people into the workforce via child care subsidies is another clear solution. And just living with higher inflation - and increasing payments to families funded by that windfall profits tax to offset increased costs - seems a far more ethical approach. Arguably, interest rates had been kept too low for a while, so some rise in rates was no doubt reasonable but deliberately ratcheting them up until the economy goes into recession is not "expert" knowledge but closer to doctors applying leeches because they don't know what else to do.
Shouldn't economic policy be based on expert knowledge? Krugman isn't wrong (in his recent op-ed) that voters' hatred of increased gas prices could lead to the end of American Democracy.
What economic policies do you suggest are appropriate now, if we give up the idea of using interest rates as a macroeconomic tool?
Which experts? Bunch of experts are skeptical of austerity as approach but are drowned out in media. See links to Center for American Progress analyzing Economist poll above.
If corporate profiteering is significant part of problem, then giant windfall profits tax would deter raising prices unless actually justified by increased costs. Focusing on supply chain problems and helping get more people into the workforce via child care subsidies is another clear solution. And just living with higher inflation - and increasing payments to families funded by that windfall profits tax to offset increased costs - seems a far more ethical approach. Arguably, interest rates had been kept too low for a while, so some rise in rates was no doubt reasonable but deliberately ratcheting them up until the economy goes into recession is not "expert" knowledge but closer to doctors applying leeches because they don't know what else to do.