Money versus Monetary Policy

An Israeli airstrike killed three Palestinians in Gaza City on Sunday, the head of the al-Shifa Hospital told Reuters, as Israeli attacks continue to hit the Strip amid the US-Israeli war against Iran. According to medics, the Israeli attack struck western Gaza City near a crowded tent camp, killing three men, including a paramedic. Several […]

The Kohn Solution For An Uncertain Fed Via RealInvestmentAdvice.com, Dario Perkins of TS Lombard wrote a piece titled “How to Respond to Oil Shocks.” His analysis draws on the Fed’s history to address how it should respond to today’s oil shock. While researching Fed transcripts from the 1990 Gulf War, he discovered a proposal by Don Kohn, senior Fed staffer, that offers a solution to the central bank’s oil shock problem: nominal GDP targeting. Kohn’s logic is straightforward and makes sense in the current environment where the Fed is contemplating monetary policy as...