Archive for the ‘Monetary policy’ Category

After I finished reading Ezra Klein’s review of Ron Suskind’s The Confidence Men, I came to the same conclusion as Matthew Ygelsias:

I really liked Ezra Klein’s review of Ron Suskind’s book in the NYRB for its wholesome focus on monetary policy errors as the most plausible way the Obama administration could have made things better. Nobody was stopping them from replacing Ben Bernanke with someone more committed to full employment, and it seems likely that they could have filled two existing Board of Governors vacancies with people more committed to full employment. If the chairman and those two empty seats all felt the way Charles Evans feels, we’d be in much better shape today. None of that is to deny that fiscal policy could have been better, but as Klein says the key blocking points on fiscal policy were in Congress.

It was, and still is, very confusing to me why the one institution that can address the current economic ills and operates more independently from political control/manipulation was ignored by this Administration.


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