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.
Why Capitalism Persists
English Summary
The article challenges the post-Cold War assumption that the defeat of communism guaranteed the inevitable global spread of US-led liberal democracy and capitalism. It notes that the current global order is characterized by significant instability, including democratic backsliding, rising public mistrust of liberal institutions, and skepticism regarding open markets. While the ideal of free-market democracy is in crisis, the core persistence of capitalist structures remains the central finding. Policymakers must therefore adjust strategies away from assuming a linear spread of liberal models, recognizing that global economic forces are now driven by complex, non-linear geopolitical and social pressures.
中文摘要
本文質疑了後冷戰時期普遍假設，即共產主義的敗退必然會導致美國主導的自由民主和資本主義在全球範圍內不可逆轉的擴散。文章指出，當前的全球秩序呈現出顯著的不穩定性，包括民主倒退、公眾對自由制度日益降低的信任，以及對開放市場的懷疑。儘管自由市場民主的理想正處於危機之中，但其核心的資本主義結構的持續性仍是本文的關鍵發現。因此，政策制定者必須調整策略，不能再假設自由主義模式會呈現線性擴散，而應認識到全球經濟力量現在是由複雜的、非線性的地緣政治和社會壓力所驅動的。
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