The Federal Reserve's Responsibility to Maintain Price Stability

The Federal Reserve has been under the influence for a long time now, really, since the early 50s, of the idea that the manipulation of the short-term interest rate is its prime policy tool. When they start raising interest rates after having kept them low for a long period of time, they cause trouble every single time. It supports hot money coming into the United States as people take advantage of it. And that's what's going on now. The notion that this is a sensible way to run a large, you know, economy at the center of the world system doesn't hold together as a story.