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currently at a stunning 2 64 trillion These excess reserves represent the fuel for significant price inflation 2 We truly live in challenging economic times The United States suffers from a massive Growth Gap...Street and middle class families behind Since the Recession ended the current return adjusted for inflation on the S P 500 is 98 percent Real disposable income per person has risen by a meager 3 6 per cent...the Fed turned to an increasingly rules based monetary policy The results were outstanding low inflation and two long and strong expansions interrupted only by a brief shallow recession Since the Great...

depth studies of inflation and monetary policy in both the United States and in high inflation countries with a specific focus on how best to reduce inflation and the economic cost of inflation Dr Ball is currently...Reserve to stop holding interest rates fixed and to permit monetary policy to do much more to prevent inflation His views eventually prevailed That should remind the Members of their responsibility Today I will...is the chart and it shows the enormous increase re cently in the rate of increase in M2 growth Inflation as a result has begun to rise Prices are rising and the U S dollar continues to sink The most useful...

the 50th anniver sary of the day when he challenged the country to put a man on the moon in his historic speech to a joint session of Congress That speech drove new breakthroughs in science exploration...

choice is potential GDP Potential GDP is a measure of what GDP would be at full employment without inflation It is a well understood and a widely used economic concept For example Stanford University economist...should examine the record care fully Between 1990 and 2000 total discretionary spending measured in inflation adjusted dollars fell by almost 6 percent or an even more dramatic 27 percent drop as a percentage...has tended to rise in our measured inflation much faster than other goods and services I for one think that we have a bit of confusion in this because whereas as inflation is usually measured as the increase...

REPORT together with MINORITY VIEWS INTRODUCTION November 1994 brought an electoral realignment of historic pro portions After 40 years of Democrat domination of Congress Re publicans won majorities in both...office on the promise of fundamentally changing the way govern ment relates to the people In another historic development the new majority has distin guished itself from its predecessors by actually delivering...years than the Republican plan seven years assumed there would be higher economic growth and lower inflation in the years to come when compared with the Republican economic assumptions and perhaps most outrageously...

disposable income per capita this anemic recov ery has generated about 2 800 less in income after inflation and taxes for every American than an average post 1960 recovery would have generated And why are...dis posable income per capita this anemic recovery has generated about 2 800 less in income after inflation and taxes for every American than an average post 1960 re covery would have generated Why are we...corporations have another 1 5 trillion in cash sitting on the sidelines And interest rates remain at near historic lows The Federal Reserve has done all that it can through mone tary policy to help this recovery...

are able to work more productively you can figure that in These are not made up numbers These are historic numbers that you can look at And so I understand CBO has announced they will be doing dy namic scoring...

kinds of pressures on China which might want to change on its own One is that it is facing high inflation and so they need to appre ciate the currency to bring down the cost of imported goods Second China...

massive amount of liquidity the Fed has already injected into the economy could trigger higher inflation before the Fed can execute its exit strategy I also believe another round of Fed intervention will...reverses course Finally Mr Chairman last January the Federal Open Market Committee adopted an explicit inflation target of two percent measured by the price index for personal consumption expendi tures By doing...course of federal fiscal policies remains quite uncertain as I will discuss shortly With regard to inflation large increases in energy prices earlier this year caused the price index for personal consumption...

that think that this can be solved on simply one side of the balance sheet without looking at any historic norms on the revenue side as well With an aging population And even with the entitlement changes...those revenues have ended up between 19 5 and 21 percent that somehow we re going to get back to a historic 18 percent revenue line that is going to be sustainable with anything approaching what the American...small but positive step in the appropriate direction The chained CPI is a more accurate measure of inflation and adopting it would both cut entitlement spending and raise tax revenue The budget savings would...