Morning Must Reads: Income Inequality and Finally Somebody Speaks Up for the Bankers

The Pittsburgh Post-Gazette has published the first in a series of stories on inequality this morning. The conservative position is apparently "What inequality?" followed by "I'm not conceding there is any inequality, but if there were, I'm sure I like it a lot!" Enjoy.

The Philadelphia Inquirer has a glowing profile of Charles Plosser, the President of the Philadelphia Federal Reserve Bank. Plosser, who votes on the Federal Open Market Committee (FOMC) which sets Fed monetary policy, has opposed calls for the FOMC to do more to boost employment growth. One policy option that Plosser opposes is for the Federal Reserve to set a modestly higher inflation target (for example, 4% instead of the current implicit 2% inflation target). Modestly higher inflation will allow debtors (homeowners) to pay off their debts faster.

Plosser opposes this policy on the grounds that monetary policy should not assign "winners and losers." Of course, tolerating persistently high unemployment — and doing nothing to help homeowners who are "under water" (i.e., they owe more on their homes than their homes are worth) — makes those homeowners bigger losers while making the bankers Plosser represents bigger winners. Unfortunately, homeowners and working families aren't represented on the Federal Open Market Committee.

Comments

0 comments posted

Post new comment

Comment Policy:

Thank you for joining the conversation. Comments are limited to 1,500 characters and are subject to approval and moderation. We reserve the right to remove comments that:

  • are injurious, defamatory, profane, off-topic or inappropriate;
  • contain personal attacks or racist, sexist, homophobic, or other slurs;
  • solicit and/or advertise for personal blogs and websites or to sell products or services;
  • may infringe the copyright or intellectual property rights of others or other applicable laws or regulations; or
  • are otherwise inconsistent with the goals of this blog.

Posted comments do not necessarily represent the views of the Keystone Research Center or Pennsylvania Budget and Policy Center and do not constitute official endorsement by either organization. Please note that comments will be approved during the Keystone Research Center's business hours.

If you have questions, please contact [email protected]

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <p> <img>
  • Lines and paragraphs break automatically.