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.
How Europe Found Its Nerve
English Summary
Following a period of appeasement to the US under a volatile administration, European nations have undergone a strategic pivot toward self-reliance and collective action. This shift was catalyzed by perceived US overreach, prompting Europe to coordinate joint military exercises, activate anti-coercion tools, and establish a collective defense financing program. Economically, the EU is rapidly constructing a parallel trading system through major bilateral deals (e.g., India, Australia), reducing dependence on traditional transatlantic markets. These developments signal that Europe is building a more resilient, sovereign security and economic core, materially altering its geopolitical trajectory toward strategic autonomy.
中文摘要
在經歷了對一個動盪的美國政府的綏靖時期後，歐洲國家已轉向了自立和集體行動的戰略轉型。這一轉變的催化劑是感知到的美國過度干預，促使歐洲協調進行聯合軍事演習、啟動反強制工具，並建立集體防禦融資計劃。在經濟層面，歐盟正透過與主要雙邊夥伴（例如印度、澳洲）達成協議，快速建構一個平行的貿易體系，從而減少對傳統跨大西洋市場的依賴。這些發展表明，歐洲正在建立一個更具韌性、更主權的安全和經濟核心，從根本上改變其地緣政治軌跡，邁向戰略自主。
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