I concur with Pete and the e21 authors. The e21 group not only has the benefit of Pete’s wisdom but that of a number of other key thinkers also. Keith Hennessey, formerly Assistant to the President for Economic Policy and Director of the National Economic Council under President Bush; Bill Kristol; and Andrew Laperriere, a Managing Director of International Strategy and Investment Group Inc., are on its board of advisers. And its staff and contributors includes impressive, serious economic and policy gurus. We’ll be hearing more from them in the days and weeks ahead. The group that released an open letter signed by a list of economists, business leaders, and policy wonks (including Michael Boskin, Roger Hertog, Amity Shlaes, Paul Singer, and John Taylor) is certainly going to be of critical importance in the public discussion ahead.
As the Wall Street Journal points out, this group is not alone in raising concerns about the Fed’s printing press. The e21 group has been discussing the issue with Republican office holders and potential 2012 candidates and has come on the heels of criticism of the plan both by Rep. Paul Ryan and Sarah Palin. The report explains:
“Printing money is no substitute for pro-growth fiscal policy,” said Rep. Mike Pence, an Indiana Republican who has been privy to early discussions with the group of conservatives rallying opposition to the Fed plan. He said the signatories to the letter “represent a growing chorus of Americans who know that we should be seeking to stimulate our economy with tax relief, spending restraint and regulatory reform rather than masking our fundamental problems by artificially creating inflation.”
The Fed faces potential pressure of a different sort from the left as well. Some prominent Democratic congressmen, including the current chairman of the House Financial Services Committee, have endorsed the quantitative-easing move.
If nothing else, the letter and the emergence on the scene of a group like e21 will demonstrate that Republicans are serious about weighty economic issues and focused on the long-term health of the dollar and the U.S. economy. The party of no — which really was never only about no — is getting some intellectual heft. This is good for it, but even more important for the country and the public debate.