Bard Economist L. Randall Wray on the Impacts of the Federal Reserve Raising Interest Rates to Fight Inflation
L. Randall Wray, professor of economics and senior scholar at the Levy Economics Institute of Bard College, and Yeva Nersisyan argue on the Hill that a Fed rate hike seems certain, yet raising rates is more likely to raise unemployment and slow growth than have any impact on our current inflation problem. “We must find a better way to think about, and deal with, inflation. There is no one-size-fits-all approach to inflation control, but what is clear is that interest rates are a very imprecise tool for influencing prices. In the current circumstance, the more appropriate solution would be to work to alleviate supply-side constraints. That, however, requires much more work and intentionality than a stroke of a pen to change interest rates, which camouflages as action rather than the cop-out it has proven to be,” write Wray and Nersisyan.
Post Date: 03-15-2022
Post Date: 03-15-2022