Should the Fed Respond to Commodity Price Increases?
March 10, 2011 at 14:51 PM EST
To answer the question in the title of this post, it’s useful to think of an island with only two goods. One of the goods is non-renewable, but highly desirable. The other good is less preferred, but it is renewable (thinking of renewable and non-renewable energy resources, for example). The key is to distinguish between [...]