Republicans propose a bill forcing the Fed to ditch the duel mandate

Some Republicans have proposed a bill to get rid of the Fed's dual mandate of price stability and full employment and switching it with a sole focus on price stability.

http://www.reuters.com/article/idUSTRE6AF49F20101116

...and this is why I would rather have the GOP in office- at least they show some signs of common sense. Now I don't have much faith in the politicians either way, but it's a start. Hopefully the Pauls can help keep support alive on this one.

Volcker wasn't all that bad (especially compared to Greenspan and Bernanke). He raised rates, which sure might have suppressed some growth, but it stopped a bubble- something that Greenspan didn't do and led to the mess we have now. Bernanke is following in Greenspan's footsteps, so that outcome doesn't look like it will be great either.


Inflation also went down during his tenure- but on that I am not so well read, so that is just going by the mainstream viewpoint- not always the most trustworthy with today's drunk Wall St., I know.

The main point here though Willyphd (and the reason I was happy to see this proposal) is that the Fed currently operates under a duel mandate where it's official policy goals are to achieve stable inflation and full employment. Anyone with even a bit of knowledge about markets knows that stable currency and full employment often don't go hand-in-hand and trying to do both with monetary policy could often be impossible. Furthermore, putting full employment at the hands of those who control money isn't a good idea because it promotes destroying the currency for the sake of full employment even if that employment isn't created stably. This often ends in disaster when bubbles form and pop- again, look at the current mess for proof.