December 1, 200421 yr Complete bs. There are many reasons the value of the dollar could be falling, only one of which is loose monetary policy. He doesn't happen to mention the others, of course. And he provides no evidence that monetary policy is too loose -- why would he? He claimed a few years ago that the Fed was being too tight. Wouldn't want to contradict himself.... And where are his "host of studies [that] demonstrate that deficits in their current range have no discernable impact on interest rates"? (Notice Kemp himself doesn't even address the logic behind "crowding out.") The best recent scholarly discussion is Gale and Orszag, who have serious concerns about the effect of the deficit on interest rates (and on the economy in general). But then, these are professional economists with a nonpartisan think tank (Brookings), why would we trust them? Kemp is a hack, and his piece is garbage.
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