Small groups, gathered in meeting rooms scattered around the world and focused on a single issue, can affect the way we live, at least now and perhaps for a long time. Consider only this week’s conclaves.
Here in Washington, the Federal Reserve Board’s monetary policy gurus met and decided to keep interest rates low until unemployment drops, even though they agreed that the economy is already improving. Meanwhile, meeting in committee rooms and in the corridors of power, Congress agreed to give the White House what its economists and the president, meeting in the Oval Office, demanded: more stimulus spending. It is true that there is considerable excess capacity in the economy, as the deflation-worriers continually point out. But anyone who believes that the meetings at the Fed, in congress, and in the White House are not laying the ground for future inflation carries a heavy burden of proof.