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.
Will Britain face up to its huge new defence bill?
English Summary
The UK government faces a widening fiscal gap in its defense budget, threatening the implementation of its 2025 Strategic Defence Review and commitments to NATO. Despite pledges to reach a 3.5% GDP spending target, the Ministry of Defence already contends with a £17 billion equipment funding deficit and potential cuts to major land and naval programs. Failure to reconcile these gaps through increased taxation or borrowing may force the UK to either abandon its nuclear capability or cede its status as Europe’s leading military power. The forthcoming Defence Investment Plan will be the ultimate test of whether Britain can realistically sustain its global security ambitions.
中文摘要
英國政府國防預算的財政缺口正持續擴大，威脅其《2025年戰略國防審查》的執行及對北約的承諾。儘管已承諾將國防支出提升至 GDP 的 3.5%，國防部仍面臨 170 億英鎊的設備資金缺口，並可能削減重大的陸軍與海軍計畫。若無法透過加稅或借貸彌補缺口，英國可能被迫放棄核武能力，或喪失其身為歐洲領先軍事強國的地位。即將發布的《國防投資計畫》將是英國能否切實維持其全球安全野心的最終試煉。
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