Warsh and the “Golden Age”

In the third of a three part series on Warsh, I argue that his sunny economic views will get a frosty reception from the rest of the FOMC

Warsh will face a big challenge in convincing the FOMC that the US is in a “Golden Age” of high growth and low inflation, justifying rate cuts. Here I outline a framework and the evidence for a golden age today.

Competing claims

There is a lot of talk about the US economy being in a “Golden Age”—with high growth in productivity and GDP, and low inflation—…