Ricochet's Money & Politics Podcast with Jim Pethokoukis: Scott Sumner
Professor Sumner is probably best known for his contrarian critique of the Federal Reserve, that a) mismanaged monetary policy -- not the housing bust or Wall Street greed -- caused the Great Recession, and b) its continued tight money policy is a big reason why the economic recovery is so weak and unemployment is so high.
Time magazine recently described Sumner as "most vocal supporter of NGDP targeting .. a strategy whereby the Federal Reserve, instead of trying to keep inflation stable and unemployment low, would announce its intention of taking any action necessary to maintain a long run nominal GDP growth rate target. This would mean that instead of buying up a certain amount of bonds like the Fed has done with QEs 1 and 2, it would set a target for the effect of those bond purchases and then, in theory, buy up as many securities as necessary to make it happen."
That's right, Sumner wants a more active Fed to boost the economy -- and thinks other free-market conservatives should, too.
Ricochet members, click here to subscribe or find the direct link. Everyone else, listen in above.