There is no doubt that I believe that the Federal Reserve under the leadership of Fed Chair Janet Yellen has kept monetary conditions too tight and I have particularly blamed Yellen’s 1970s style obsession with the Phillips curve for this.

Michael Belongia and Peter Ireland have a very good comment over at Manhattan Institute’s E21 site on exactly this topic. Take a look for yourself here.

PS see some of my earlier posts on Yellen and the Phillips curve here and here.