Following is a letter sent to the Editor of the Financial Times:
Dear Sir,
I agree with the Ford CEO in his request that the Fed should make growth a priority ("Ford chief calls for Fed push on growth" Financial Times, August 23 2007). The Fed should focus on inflation control!
Didn´t Professor Phelps receive a Nobel Prize for Economics last year for showing that this sort of trade-off did not exist?
Are we back to that canard again?
Onésimo Alvarez-Moro
See article:
The chief executive of Ford has joined calls for the Federal Reserve to stimulate the economy, saying the housing crisis and credit turmoil has made sustaining economic growth a ‘priority’.
In an indication of the growing pressure on the Fed to cut rates, Alan Mulally said economic and credit conditions were a “big headwind” to his plan to turn round the carmaker, which last year lost $12.65bn.
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