Mr. Hard Money Ryan

by pdxblake

Paul Ryan supported a bill in Congress that would have stripped down the Federal Reserve’s dual mandate (“maximum employment and price stability”) down to just the price stability mandate.   In practical terms this would do very little since the Fed is abjectly neglecting to do much of anything at the moment despite high unemployment and an inflation rate below its 2% target, but it is another piece of symbolic evidence that Paul Ryan (and this is probably one of the reason Romney likes him) is for those with wealth and against the rest of us.

Removing the focus on employment and focusing the Fed exclusively by law (rather than by choice at the moment) on price stability means that monetary policy will end up being too tight, which is good for the “hard money” types who make most of their wealth in the form of interest payments (inflation degrades the value of their interest payments, and also the value of the debt they own).  However, as we see now, when monetary policy is not becoming more easy, the result is longer and higher unemployment.

UPDATE: More aspects of Ryan’s monetary policy views.