Word: volckerism
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
Even if the Federal Reserve violates Volcker's commitment to tight monetary policy and pours out enough money to meet the borrowing demands of both Government and business, says Wenglowski, the eventual outcome could be, if anything, worse than the stagnation scenario. Interest rates would stay down temporarily, and production might grow rapidly and unemployment drop for a while. But then inflation would reignite, and sooner or later the Federal Reserve would have to crack down again to choke off the miniboom. That scenario would in effect mark a return to the dismal and overlapping inflation-recession cycles...
Federal Reserve Board Chairman Paul Volcker, who opposes the amendment but supports its goals, has warned Congress that the arrangement could give the President a line-item veto of the entire budget and grant him, in effect, the power to impound any federal funds he wishes. Congress would no longer be able to mandate or create new programs. In the name of balancing the budget, the President could theoretically drop entire programs without any possibility of congressional review...
Throughout the country, medical charges last year jumped by a record 12.5%, the largest gain for any major consumer item, and are still rising at about the same breathless clip. Says Federal Reserve Chairman Paul Volcker: "We appear to have turned the corner on most of inflation, but health costs have shown very little sign of improvement...
...supply this year has indeed tended to overshoot the targets set by the Fed. But only a small, though growing, group of critics outside the Administration believes the problem is caused by the Fed alone. Within 48 hours the White House was all but disowning Sprinkel's anti-Volcker sniping, and even Regan wound up admitting that the Fed's formally independent status "is a good thing." In actuality, the Federal Reserve Board has traditionally followed the lead of the Administration in power...
...board's current chairman, Paul Volcker, perhaps the most frustrating task is figuring out what the President wants him to do. Administration critics have sometimes accused him of pursuing an overly restrictive monetary policy and at other times attacked him for being too expansive and unpredictable. If nothing else, having the Fed to kick around certainly seems a satisfying and time-tested diversion for policymakers in times of economic tumult...