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The Role of Sound Monetary Policy in an Abundance Agenda
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Patrick Horan
A slowdown in economic growth is putting the American Dream out of reach for an increasing number of Americans. To counter that slowdown, it’s clear that we need an “abundance agenda” to boost American prosperity. Given the Federal Reserve’s importance in the American and global financial systems, it’s imperative that we ask: What is the role of monetary policy in an abundance agenda?
The answer is twofold. On one hand, a sound monetary policy is essential to macroeconomic stability, which is a prerequisite for prosperity. On the other hand, monetary policy, by itself, cannot do much to affect long-run growth. Thinking that monetary policy can be used to create abundance can ultimately lead to disaster.
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