EconBuff Podcast #50 with Alex Salter
Dr. Alex Salter talks with me about his book Money and the Rule of Law. Dr. Salter explains the major problems with current monetary policy execution. Dr. Salter argues that central banks struggle to implement monetary policy effectively because of discretion on the part of the central bank. We explore Salter’s main argument in the book, that the Federal Reserve should not make its own goals, but that the democratic process should more tightly define the Fed’s objectives. Dr. Salter lays the framework out for how the paradigm of monetary policy should be redefined, where the rule of law should provide the foundation for monetary policy, removing discretion over the goals of the Fed. Finally, we explore Dr. Salter’s recent opinion piece where he argues that the FED should stop lowering interest rates even though inflation was 3.7% at the time of his writing. Thumbnail photo credit: Bing AI Image Generation