I'll say

By Megan McArdle

Says Greg Mankiw:

The last thing we need is the perception that the Fed is caving in to political pressure. Such a perception, even if unfounded, would raise inflation expectations and make the Fed's job even harder.



Note to Congress: if inflationary expectations go up, the Fed has to raise interest rates in order to combat them. Thus, demanding that the Fed ease the money supply is actively counterproductive. Please stop.

This article available online at:

http://www.theatlantic.com/business/archive/2007/09/i-apos-ll-say/1955/