39 Quotes by Martin Feldstein

Why has this improvement in inflation and in the business cycle occurred? I think the answer is better monetary policy, better central banking.

With sound monetary policy, the increases in import prices are offset by lower inflation for domestically produced goods and services.

We do not understand the links between asset prices, monetary policy, and aggregate demand. We do not understand speculative markets adequately.

And when the dollar decline makes foreign travel much more expensive, I will do more of my vacation traveling in the United States.

Household saving fell from 2.5 per cent of after-tax income in the third quarter of 2003 to a remarkable minus 1.8 per cent two years later.

Domestic inflation reflects domestic monetary policy.

After all, an overvalued dollar gives us the ability to buy foreign goods at lower prices. And the existing volume of exports brings more yen and euros than they would if the dollar were more competitive.

An increase in the relative price of products from the low wage manufacturers in Asia and Latin America will also make those products less attractive to American consumers.

Unless the trade deficit shrinks, the combination of the trade deficit and the interest and dividend payments to foreigners will grow ever more rapidly.