Amanda Bird Quotes
With sound monetary policy, the increases in import prices are offset by lower inflation for domestically produced goods and services.
Why has this improvement in inflation and in the business cycle occurred? I think the answer is better monetary policy, better central banking.
We pay some price when necessary to bring down inflation but that price is temporary and is not large relative to the permanent gain from reduced inflation.
We do not understand the links between asset prices, monetary policy, and aggregate demand. We do not understand speculative markets adequately.
We are particularly poor at the open economy issues.