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Believe whatever you like

Summary:
Lindsey Graham has certainly raised some eyebrows since the death of his friend John McCain, by radically shifting his approach to politics. But give Graham credit for being honest about what’s going on, in this remark from 2018: “I would imagine in a Democratic administration, I would be all over them for being in the pocket of Saudi Arabia,” Graham said of Mattis and Pompeo. “But since I have such respect for them, I’m going to assume they are being good soldiers. In politics, people obviously believe what they wish to believe. Some Trump supporters would like to believe that Trump shares their opposition to the Fed’s recent “lowflation” policies. But does Trump actually oppose tight money? Or is he a secret NeoFisherian, who favors low interest rates because they

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Lindsey Graham has certainly raised some eyebrows since the death of his friend John McCain, by radically shifting his approach to politics. But give Graham credit for being honest about what’s going on, in this remark from 2018:

“I would imagine in a Democratic administration, I would be all over them for being in the pocket of Saudi Arabia,” Graham said of Mattis and Pompeo. “But since I have such respect for them, I’m going to assume they are being good soldiers.

In politics, people obviously believe what they wish to believe. Some Trump supporters would like to believe that Trump shares their opposition to the Fed’s recent “lowflation” policies. But does Trump actually oppose tight money? Or is he a secret NeoFisherian, who favors low interest rates because they are associated with low inflation?

The best way to answer this question is NOT to look at the statements of Trump himself, which are entirely incoherent. But I know that some of you disagree, and so I provide this recent quote for those of you that hang on his every word:

He followed up with a separate tweet, saying: “The United States has VERY LOW INFLATION, a beautiful thing!”

(Yes, I’m just joking around here, so don’t get on your high horse in the comment section. I have a more serious post on the same topic over at Econlog, which I recommend that you read.)


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Scott Sumner
Scott B. Sumner is Research Fellow at the Independent Institute, the Director of the Program on Monetary Policy at the Mercatus Center at George Mason University and an economist who teaches at Bentley University in Waltham, Massachusetts. His economics blog, The Money Illusion, popularized the idea of nominal GDP targeting, which says that the Fed should target nominal GDP—i.e., real GDP growth plus the rate of inflation—to better "induce the correct level of business investment".

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