The Fed’s Policy of Price Stability Helps Create an Unstable Economy
The Federal Reserve claims that its policies are aimed a keeping prices stable. However, these policies actually undermine the economy and make it unstable.
Source: Mises Institute
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DW NOTE
The Fed is not creating price stability — it's creating a statistical fiction that obscures real resource misallocation. When you suppress price signals through monetary intervention to hold a consumer index steady, you don't eliminate scarcity or changing preferences; you just make it harder for businesses to read them. The VIX is up 29% in a year, gold is down 23% from January's peak, and oil has swung 25% — but as long as the CPI looks tame, the Fed calls that stability.