Self-Defeating Monetary Policy

Self-Defeating Monetary Policy by 720 Global

“It’s self-defeating to use the wrong monetary policy.” -Ben Bernanke

• What is productivity?
• The Federal Reserve’s flawed growth benchmark
• Excessive monetary policy is crushing productivity
• The prescription for sustainable, durable growth - productivity

"Because it is unclear exactly why productivity growth has slowed recently, it is difficult to be confident about what it will do in the future”. –Bill Dudley June 2015

The recent quote from Federal Reserve Bank of New York President and Vice-chairman of the Federal Open Market Committee, Bill Dudley, inspired us to write this article and explain what Mr. Dudley cannot; why productivity, the key driver of economic growth, is not only slowing but on the verge of declining.

Bill Dudley and the Federal Reserve...