Along with other pro-growth measures -- such as Social Security reform anchored by personal savings accounts, tax simplification that will likely flatten marginal rates and broaden the tax base, reform of litigation-settlement abuse and energy deregulation -- the policy mix of supply-side fiscal reform coupled with stable money should prolong a non-inflationary 4 percent growth path for years to come.

 The Fed's job is not yet complete. The recent spurt in gold prices, as well as a modest creeping up of inflation, suggests the need for more bond sales by the central bank in order to drain excess money. As a result, short-term interest rates will rise to more normal levels (think 3 percent to 4 percent) in the year ahead.

 Judging from the positive response of stocks and bonds to this year's Fed adjustment, another year of "measured" Fed actions will be well received by the markets and the economy. Let the worry warts worry. Let the pessimists whine away. The fact is, lower tax rates and sound money will deliver a long prosperity boom.