Magazine June 2, 2014, Issue

The Right Goal for Central Banks

When the target is nominal, results are phenomenal

A global economic crisis may be painful, but it can provide some useful lessons. Countries recovered from the Great Depression in the order that they exited the gold standard of the time, which is a major reason most economists no longer favor that monetary regime. The turmoil of the last few years has followed a pattern as well: The more a country’s central bank has done to keep nominal spending growing at a steady rate, the better that country has done. This international experience adds to an already-strong theoretical case for keeping nominal spending — the total amount of money

In This Issue

Articles

Features

Politics & Policy

Tall Cotton

Hot Springs, Ark. — ‘I picked up running in the Army,” says Representative Tom Cotton from the backseat of a car as we drive out of Hot Springs on April ...

Books, Arts & Manners

Politics & Policy

A Christo Garland

I’d known for years that Christopher Buckley was an amusing man. His novel Thank You for Smoking (1994), for example, had me crying, yes crying, with laughter. But it wasn’t ...
Politics & Policy

Reinhart at Home

One of America’s last literary lions has stopped writing novels, and hardly anybody has noticed. “Around age 85, I did write a 24th novel, really more of a novella,” Thomas Berger ...
Politics & Policy

A Green Scam

In this corner, we have a human-rights lawyer representing the interests of indigenous people in the Amazon residing in a remote corner of Ecuador polluted by the by-products of oil ...

Sections

Politics & Policy

Letters

Into the Woods “Public-Land Colonialism,” by Travis Kavulla (May 19 issue), does a good job of describing Cliven Bundy’s battle with the Bureau of Land Management (BLM). However, it gives the ...
Politics & Policy

The Week

‐ Are we even sure Boko Haram is on Twitter? ‐ Boko Haram, the killer Islamist cult of northern Nigeria, kidnapped hundreds of schoolgirls and threatens, in a video narrated by ...
Politics & Policy

Poetry

GOD’S BENEDICTION God’s benediction — earliest of rays – Turning it a bit more wan And drowsy, slipped across the cherished face, To make it sleep with greater calm. Without a doubt, it seemed to ...

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