Friday, June 29, 2012

Dallas Fed is making the same mistake Perry made

Last night - The Atlantic posted a short story about how Dallas Fed Chairman Richard Fisher was doing a bit of bragging about his region.

And rightly so! I mean, come on! Texas is destroying the rest of the nation when it comes to job growth. 

Here is some:
"We have the same monetary policy as the rest of the United States," he said. "Why are we outperforming the rest of the country?" He ticked off a number of qualities that make Texas stand out. "We have made ourselves more business friendly. We have no income tax. We have a regulatory environment that is more business and job friendly," he said. "I'm convinced since we all have the same monetary policy, if we had differentiation for pro-growth policies, we'd have more economic growth." 
This conversation sounds oddly familiar.

Back when Rick Perry was running for President, he said essentially the same thing about fiscal policy. Texas was growing under his policies as Governor - policies that are certainly different from Obama. And yet, many came forward (see here and here) to point out that Texas's success could also be attribute to plenty of other factors that have nothing to do with fiscal policy - i.e. immigration.

I'm going to take a wild guess that it's probably the same situation with monetary policy. So Mr. Fisher: The country is a big complicated place! But I understand how hard it is to think about the world outside of Texas.

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