FYI: Economists generally agree that a central bank that is independent of political pressure is a prerequisite for sound monetary policy.1 However, in recent years, there have been numerous proposals to subject the conduct of monetary policy of the U.S. central bank—the Federal Reserve—to formal and close congressional oversight beyond what is already taking place.2 One prime justification for these proposals is the significant increase in the price level since the establishment of the Fed in 1913.
The purpose of this article is not to discuss the merits or shortcomings of the various proposals, but rather to provide some historical context to this rationale by revisiting some basic facts about prices and inflation since the founding of the country.
Regards,
Ted
http://ritholtz.com/2017/10/short-history-ofinflation-since-founding-u-s/
