The article argues that the Federal Reserve's recent rate hike decision, while justifiable on inflation grounds, highlights a critical lack of an underlying, transparent policy framework. The core problem is that the Fed's decisions appear discretionary, leading to market uncertainty because the committee's judgment, rather than clear data, dictates policy shifts. The author proposes that the Fed adopt a formal monetary policy rule—an algebraic formula linking the target rate to indicators like inflation and unemployment—to replace subjective guidance. Implementing such a rule would provide market predictability, enhance transparency, and shield the Fed from political attacks by making deviations from the standard easily quantifiable.
A voluntary export fee (VEF) on pollution: Recovering foreign tax revenue to support US clean manufacturing
English Summary
The article analyzes the impact of the EU's Carbon Border Adjustment Mechanism (CBAM) and proposes a Voluntary Export Fee (VEF) as a strategic U.S. response. The VEF would allow U.S. exporters to pay a voluntary domestic carbon fee, which would then qualify for a credit against the CBAM liabilities levied by the EU. This mechanism redirects projected EU revenue (estimated at up to $400 million annually) back to the U.S. government, providing a politically feasible alternative to a mandatory domestic carbon tax. Implementing the VEF would enable the U.S. to align its trade policy with global decarbonization efforts while simultaneously generating dedicated funds for domestic clean manufacturing and infrastructure.
中文摘要
本文分析了歐盟的碳邊境調整機制（CBAM）帶來的影響，並提出設立「自願出口費用」（VEF）作為美國的戰略回應。該VEF機制將允許美國出口商繳納自願性的國內碳費用，此費用可作為抵扣歐盟徵收的CBAM應繳負債。此機制旨在將預計流入歐盟的收入（估計每年高達4億美元）轉回美國政府，為實施強制性國內碳稅提供了一個政治上可行的替代方案。實施VEF將使美國能夠使其貿易政策與全球脫碳努力保持一致，同時為國內清潔製造和基礎設施生成專門的資金來源。
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