Answering Challenges to Advanced Economies

"The Fed intends to deliberately let inflation run above target, in the belief that this will drive up employment, especially among disadvantaged groups. But in the 1970s we learned that there is no lasting trade-off between inflation and employment. Sustainable employment and wages result only from macroeconomic efficiency, better incentives, and well-functioning markets."

—Rose-Marie and Jack Anderson Senior Fellow John H. Cochrane and Distinguished Visiting Fellow Kevin Hassett in National Review, April 26, 2021

All told, the IRA will not only raise far less revenue and yield far fewer savings and less deficit reduction than advertised; it also will spend, subsidize, and regulate far less efficiently than its supporters contend. But worst of all is its titular claim to be reducing inflation. Most likely, the law will exacerbate inflation in the near term, while reducing it only trivially down the road (when it is projected to have declined already).

- Wohlford Family Senior Fellow Michael J. Boskin in Project Syndicate, August 25, 2022

“Competition with China would be only one of the motives, among many others, for creating a US digital-dollar technology. There’s hope that a US digital dollar could improve the efficiency of the American payment system, which currently is not good. It’s expensive and slow to move money in the United States. Moreover, many Americans don’t even have bank accounts. The US could also benefit from digital-dollar technology by being in a better position to lead in the development of global standards for cross-border payments, such as privacy protection. It’s harder for the US government to provide leadership in the international community if the US itself does not have the technology.”

—Senior Fellow Darrell Duffie in a Hoover Institution Q&A, March 10, 2022