Governors Bush and Christie recently were commended at ThePulse, here and here, for their astute leadership in raising the issue of the Fed’s role in causing the dearth of job creation, median family income stagnation, and the lack of income mobility. There is a “killer app” by which this issue can be joined safely and powerfully.
There a healthy diversity of opinion within the GOP economic elites as to which “rule” the Fed should be following to optimize job creation and economic mobility for median income families. That said, there is unanimity on the right that the Fed should be following a rule. Some advocate for the “Taylor Rule,” others for “NGDP targeting,” and there is a significant support, including among public intellectuals such as Steve Forbes and George Gilder and academic economists such as Prof. Lawrence White, for the “Golden Rule.”
The presidential aspirants properly might consider it premature to take a position as to which rule is optimal. They understandably might be hesitant to dive into controversial matter of the gold standard. (That said, a 2012 poll by Rasmussen strongly suggests that the gold standard holds dramatic, and unexploited, voter appeal among GOP base voters — conservatives and Tea Party members, especially, but also moderate Republicans — and also among African-Americans and labor union members, showing its general election appeal.)
The most high-powered and safest way to bring into the debate “the question the liberals don’t want to discuss” — as termed in an editorial by the New York Sun — is to support the creation a monetary Commission. Continue Reading