Search

STUDIES 17 Monetary Policy 19 Lessons From Inflation Targeting Experience 19 The Importance of the Federal Reserve 19 Establishing Federal Reserve Inflation Goals 19 A Response to Criticisms of Price Stability...began in the second quarter of 1991 continues to generate economic and employment gains even as the inflation rate continues to decline Economic growth has been solid over the last four quarters and employment...proceed at a moderate albeit below normal pace Despite a frequent saw tooth pattern in various month to month or quarter to quarter economic statistics the current expansion has persisted now ranking among...

highly favorable impression of conditions and prospects than facts justify Emphasis upon fighting an inflation straw man at the expense of what should be the primary objectives of economic policy maxi mum employment...borrow in order to obtain reserves The fear of anticipated price rises and the fear of anticipated inflation have obviously been given greater weight in the minds of the authorities than actual facts Unless...families would be inflationary This committee has a record of being as zealous in its battles against inflation as anyone We call attention to this committee s unanimous recommendation to the Congress in July...

com mittee pointed out the limitations imposed by the need for main taining revenues to combat inflation In view of the changed Representative KILBuRN I feel that I must dissent from any view that treats...increased the rediscount rate by one half of 1 percent and it still appears to be most fearful of inflation which does not now exist It is true that the wholesale price index is at its highest point and the...competition in these huge cartelized industries Using monetary policy in a period of a recession to fight inflation in JOITT ECONOMIC REPORT FOR 1958 15 the administered prices of the giant monopolies is to outdo...

304 79th Cong THE SIGNIFICANCE OF THE EMPLOYMENT ACT TO THE CURRENT SITUATION Eight years ago this month the Employment Act of 1946 passed the Congress by an overwhelming vote as a bipartisan expression...President s Report posing the problem of readjustment a transition from war and inflation to peace and monetary stabil ity Inflation of prices resulting from the Korean war had in fact subsided in early 1951...American people come closer to realizing the ideal of high and expanding employment without price inflation than in 1953 This is promptly followed by this complete contradiction But some sections of industry...

resilient spurred by tax relief enacted in earlier years and low interest rates Partly because inflation and inflation expectations remained well contained interest rates have not changed significantly since...partly because of strong demand from China and India Despite rising energy and commodity prices inflation in consumer prices remains low by historical standards Between the third quarter of last year and...to turn positive in September 2003 and job gains continued throughout the remainder of the year Inflation remained benign at the close of last year This allowed the Federal Reserve to keep short term overnight...

CONTENTS Page CHAIRMAN S OVERVIEW OF CURRENT MACROECONOMIC CONDITIONS I REPUBLICAN STAFF REPORTS 7 Inflation Targeting Goals for the Federal Reserve 8 Fiscal Policy Choices Examining the Empirical Evidence...reflected in the labor market Payroll employment gains for example averaged about 260 000 jobs per month in the two years prior to June 2000 but actually declined on average in the year and a half after...as well Prices and Inflation Broad measures of inflation continue to indicate that inflation is not an important problem at this time This is also true of core measures of inflation that remove the influence...

taxes be increased 8 Can we rely on consumer savings and economy in private expenditures to prevent inflation 9 After the defense build up what 10 Summary of recommended course of action 10 Unity on major national...the inflation which sooner or later seems inevitable if the policy is aban doned This is not to say that the economy of the United States can not carry a deficit for a short period without inflation But...rise in price of goods of general consumption an increase in the burden of taxatio and arisein inflation At the same time the monopolies are making profits on the preparation for war and are plundering...

management II The problem of economic preparedness 18 III The problem of protecting the victims of inflation 26 The problem of promoting balanced economic growth 28 Power 32 St Lawrence waterway project L...range employment and production goals while at the same time resisting the dangers of continued inflation 3 the establishment of a better balance between production and consumption income and investment...those in the lower income brackets may not be made the victims of inflation 5 authorization for Government controls to prevent inflation so long as the country must make extraordinary expenditures for national...

CONTENTS Overview of Current Macroeconomic Conditions 1 MAJORITY STAFF REPORTS 9 Economic Effects of Inflation Targeting 10 Individuals and the Compliance Costs of Taxation 26 OPEC and the High Cost of Oil 33...macroeconomic activity indicates that the economy is expanding robustly with little sign of any meaningful inflation In the third quarter for example the most recent data indicate that real GDP growth was robust at...feature of the recent U S economy is the lower and more stable rate of inflation we have experienced While most broad measures of inflation provide similar information we nonetheless use the core PCE on a year...

stabilizing but with continued low mortgage rates housing activity is expected to remain strong Inflation Remains Benign Deflation Concerns Recede The year began with some concerns by the Federal Reserve...sustained strong economic growth More recently there have been upward movements in measures of inflation expectations so deflation concerns have almost entirely disappeared The consumer price index CPI...about 3 4 However most of these increases were due to volatile energy prices The core rates of inflation which exclude food and energy prices have shown little inflationary pressure the core CPI has increased...