Challenges for Monetary Policy Part 13 of 14
In my view, the degree of substantive action to support economic growth and insure against downside risk will be conditioned by Instant Forex Profit what we see coming down the inflation pike. To deliver on its dual mandate, the Fed must keep one ear cocked toward signs that inflationary expectations are drifting upward as we execute additional monetary measures.
Let me bring this home to Philadelphia. In 1748, Benjamin Franklin wrote an Advice to a Young Tradesman. In it, he speaks in the language of the day of the concepts of opportunity cost and of the power of compound interestpretty precocious stuff for those times. Of the money supply, he wrote that the more there is of it, the more it produces at every turning, so that the profits rise quicker and quicker. Yet he also warns in earthy terms of Fellow Traders the dangers of being too prolific. He that kills a breeding sow, Franklin warned, destroys all her offspring to the thousandth generation. He that murders a crown the currency of the day, destroys all that it might have produced.
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