(This post continues my discussion of the "regime uncertainty" hypothesis, according to which the New Deal hampered recovery by causing businessmen to fear policy changes that might render their investments unprofitable.)   Insull's Monstrosity The 1935 Revenue Act wasn't the only measure that had businessmen and investors…

In her CMFA working paper, Carola Binder discusses a new approach for understanding why central bankers are pressured—by both politicians and the public—to deviate from their mandates. Further, Binder argues that this new approach “strengthens the case for limiting monetary policymakers’ discretion by implementing rule-based monetary policy.”…