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.
Taiwan’s Political Polarization Is Playing Into China’s Hands
English Summary
Taiwan's progress in building defense resilience and leveraging its status as a tech superpower is being undermined by deep political polarization. While the island has enhanced its military readiness and economic ties with the U.S., the inability to pass a special defense budget due to internal political disputes creates a critical vulnerability. This impasse allows China to exert pressure, making it difficult for Taiwan to maintain deterrence and invest in necessary defense capabilities. Strategically, Taiwan must prioritize internal political consensus to fund its defense and resilience efforts, thereby eliminating coercion as a viable option for Beijing and forcing dialogue.
中文摘要
台灣在建立國防韌性及利用科技強國地位方面的進展，正受到深刻的政治兩極化所削弱。儘管台灣已提升軍事戰備和與美國的經濟聯繫，但由於內部政治爭議導致無法通過特別國防預算，形成了一個關鍵的脆弱點。這種僵局使得中國能夠施加壓力，令台灣難以維持嚇阻能力並投入必要的國防建設。從戰略角度來看，台灣必須優先建立內部政治共識，以資助其國防與韌性建設，從而消除北京的威脅選項，迫使其進入對話。
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