Domestic inflation reflects domestic monetary policy.
My theme this evening is that America needs a competitive dollar.
First, I think the science of monetary economics has clearly gotten better.
The more competitive value of the dollar turned around the trade deficit.
We are particularly poor at the open economy issues.
Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work.