Dear Monetary Policy Observer,
Paul Krugman is one the leading, and shrillest, critics of free market economic policies. Thus it is of real interest that Prof. Krugman wrote that he considers Asimov’s Foundation Trilogy the most influential book of his life, and was inspired by it to “develop a social science that gives its acolytes a unique ability to understand and perhaps shape human destiny.” APIA's senior economics advisor, Ralph Benko, devoted two columns at Forbes.com entitled “The Science Fiction Behind Paul Krugman's Economics, Parts One and Two.”
Prof. Krugman says, in a foreword to an edition of Asimov's great work: "The trilogy really is a unique masterpiece; there has never been anything quite like it. ... I grew up wanting to be Hari Seldon, using my understanding of the mathematics of human behavior to save civilization.”
The contrast between Prof. Krugman and some of his fellow Nobel laureates, such as Hayek and Mundell, represents a “War of the Worldviews” that will determine whether America continues to stagnate economically or once again flourishes. It is our belief that model-based central planning now practiced by the Federal Reserve, as championed by Prof. Krugman, has shown itself a recipe for putting the American economy into the Twilight Zone. It is time for a review of what monetary regimes have proven, in practice, optimal for job creation, economic mobility, and equitable prosperity.
Monetary policy is within Congress's constitutional powers. We commend the prospect of Congress convening a monetary commission, to which end legislation was initiated in the 113th Congress, gaining 40 sponsors. We also hope and expect to see it introduced in the 114th.
American Principles In Action