David Henderson, writing for the Cato Institute , says that Greenspan ran a “tight” monetary policy. So of course he can’t be blamed. Robert Murphy has already responded to this claim in a wonderful article . Some additional thoughts. First: Second: But Henderson says that these are not relevant data. We should instead look at year-on-year change.
Bill Fleckenstein ( MSN Money ) says that the next Fed chairman should “Be well-versed in the so-called Austrian School of Economics.... a school of economic thought championed by, among others, Nobel laureate Friedrich von Hayek. The Austrians deny that a central bank, such as the Fed, can work economic miracles by juggling interest rates. In
It’s Bernanke for the Fed . And here . His most famous comment: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so,
MAN Financial chief economist Dr Frank Shostak has a warning for investors. The Reserve Bank’s monetary policy is “out of control” and that means inflation is heading up, interest rates are set to rise and the share market is only being supported by excessive money supply. He believes the Reserve Bank uses incorrect definitions of inflation and
The Fed shall work to counter business cycles, stabilize the banking system against shocks, and print billions of dollars so as to keep stock market prices as high as possible: NYT : Hoping to provide some comfort that there is ample cash available, the Federal Reserve made its largest intervention since the markets reopened Sept. 19, 2001, in the
The rate cut today is a good reminder that the Fed can’t always get its way. It is usually assumed that the trouble with the Fed in 1930 was that it failed to attempt to expand money and credit. In fact, Bernanke himself has made this argument and sworn it will never happen again. Rothbard, in America’s Great Depression, makes the opposite case:
It was this very day that I was telling some visiting students about the silliness of the old populist silver movement of the late 19th century, how they ridiculously believed that all economic troubles could be solved if only the government would print more money — not realizing that more money only means watering down the value of the existing
Marketwatch quotes Bernanke on a new benchmark: “We will not let prices fall at 10% a year.” Good thing he hasn’t been running the computer industry for the last 15 years.
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The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.