| Ensuring financial stability
Calls for more extensive regulation of the financial sector are becoming louder as the U.S. financial crisis deepens, but it’s probably more important to address the colossal error in monetary policy at the root of the epochal mess (if and when the current panic ever stabilizes). To explain, let’s first consider the historical context. After the inflationary surges of the 1970s, central banks became inflation fighters and anchored monetary policy to a formal (or informal) price-stability rule. This was a vast improvement over the previous policy of pumping the money supply up and down in response to macroeconomic conditions — which only resulted in extreme macroeconomic fluctuations and a steadily rising inflation level. Price stability was generally defined as an annual rate of change in the consumer price index (CPI) within a band centred on 2%.
John McCain on the mortgage crisis: "Any assistance must be temporary"
"It is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers." Editor's note: John McCain addressed the mortgage crisis at the Orange Country Hispanic Small Business Roundtable on March 25, 2008. His remarks follow. .
Budget Questions Remain As April 1 Vote Nears
With less than a week to go before they must adopt a FY 2009 budget, county supervisors continue to search for answers that will lead them to a suitable tax rate and adequate funding for government and school operations.The public school system, though, continues to wait word on how deeply supervisors will cut into its proposed $794.3 budget.Superintendent Edgar B. Hatrick and school board Chairman Robert F. DuPree (Dulles) planned to discuss the matter at the supervisors' budget work session last night, but time ran out. Supervisors planned to discuss both the county and schools operating budgets tonight.Since the budget process began, supervisors have made it clear that this year's budget will be different. Referencing concerns about residents struggling to keep up with a significant tax hike, supervisors have suggested setting the tax rate as low as $1.10, about 11 cents lower than County Administrator Kirby Bowers has proposed and 14 cents higher than the current rate of 96 cents.If Bowers' proposal were adopted, it would mean a $22.6 million reduction from the schools proposed budget.
|
