Wednesday, November 21, 2007
Dear Dr. Bernanke:
It seems to me that there is more economic volatility than is necessary as our current cycles play out. I'd like to propose the question: Is it possible for us to have less wealth volatility, and more stable asset inflation, if we were to target inflation at 1-2%, Treaury Bills at 3.5%, and Ten year Treasuries at 5.5%? Would this help strengthen and stabilize the dollar? Would this help decrease asset inflation and help stabilize wealth valuations? It seems to me that the dollar volatility contributes significantly to the uncertainty of asset valuations, and therefore, of economic decision making.
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