vampires react to sunlight
Gold Dollars, Rule Dollars, And Yellen Dollars
On July 7, Congressmen Bill Huizenga and Scott Garrett introduced H.R. 5018, the “Federal Reserve Accountability and Transparency Act of 2014.” H.R. 5018 would mandate that the Fed articulate a rule for conducting monetary policy. It would further require that the Fed report to Congress twice a year and compare the actual results with both their chosen rule and with the “Taylor Rule,” which was developed by Stanford economist John B. Taylor in 1992.
Both the Fed itself and progressive economists have reacted to this very mild piece of reform legislation in the way that vampires react to sunlight. They don’t like it one bit.
During her testimony before the House Financial Services Committee on July 16, Fed Chairman Janet Yellen argued that it would be a “grave mistake” for Congress to adopt legislation constraining the Fed’s management of monetary policy, because this would impair the Fed’s ability to manage the economy, and its ability to respond to financial crises. She said that such a law “…would essentially undermine central bank independence.”
https://www.forbes.com/sites/louiswoodhill/2014/07/24/gold-dollars-rule-dollars-and-yellen-dollars/
