[Moonman62]

Laffer is a really important person in the history of modern supply-side economics, and he makes some good points in the article, but he also says some things that makes me think he was drunk when wrote it. For instance, the Fed does much more than jawbone the fed funds rate.

You bring up the point that the Fed is a market follower. Well, that's true in the best of cases. For the past seven years or so, Greenspan has ignored the market completely.

[The Raven]

>>For the past seven years or so, Greenspan has ignored the market completely

No - not that market.....The fed is reacting to the interest rate market.....if they did nothing - the market rate would be too far away from their prime rate...so they adjust it. I'll see if I can find the article explaining that and post it here.