Policy Uncertainty

This column was published in Savannah Morning News.

Zombie economics concerns policy and economic views which, no matter how forcefully or frequently debunked, keep returning without any regard for the evidence. Rising interest rates and rampant inflation, dogmatically argued as a consequence of the Federal Reserve’s balance sheet expansion over the last four years, fall into this category as both failed to materialize. A recent candidate for inclusion in this category is the notion that the administration and the Fed in their conduct of fiscal and monetary policy are creating grave “uncertainty” above that which is inherent to the future and associated with any change in policy...