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.
Takaichi takes on Trump
English Summary
Prime Minister Sanae Takaichi’s visit to Washington underscores the strain on the Japan-US alliance as Japan’s oil-dependent economy suffers from US-led Middle East conflicts while facing pressure to increase defense spending. Despite significant commitments to Trump’s missile defense plans and tariff agreements, Japan remains wary of the US's long-term reliability in countering China’s regional assertiveness. Consequently, Tokyo is shifting its strategy toward greater self-reliance and the cultivation of diverse security and economic partnerships, such as with Australia and the CPTPP, to uphold a rules-based international order.
中文摘要
高市早苗首相的華盛頓之行凸顯了日美同盟正承受壓力。日本高度依賴石油的經濟因美國主導的中東衝突而受挫，同時又面臨提高國防預算的壓力。儘管對川普政府的導彈防禦計畫與關稅協議做出重大承諾，但東京對於美國在抗衡中國區域強硬立場時的長期可靠性仍存戒心。因此，日本正將戰略轉向更高度的自立，並致力於發展多元的安全與經濟夥伴關係（如與澳洲及 CPTPP 的合作），以維護基於規則的國際秩序。
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