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A Failure of US Checks and Balances

  • Brendan Brown
Chapter

Abstract

At no stage has Congress challenged the Federal Reserve taking the US on to the 2% inflation standard. A specific aim for prices has long been at the top of the agenda for those in Congress seeking to hold the Fed to account. The founding Fed leadership blocked legislative action in that direction; it took the Greatest Peacetime Inflation for a Congressional mandate to emerge including stable prices and high employment buttressed by money supply targets. This chapter explores why there was no Congressional pushback against the Greenspan and Bernanke Feds repudiating money supply targets and substituting 2% inflation for stable prices. Concluding question: would rigorous audits and a sound money coalition end the dangerous fixation of Congressional overseers on price or inflation targets?

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Brendan Brown
    • 1
  1. 1.Economic ResearchMUFGLondonUK

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