“Fed Up, Again” – Steve Hanke
“One of the first casualties of a financial crisis is the truth. During times of stress, central bankers embrace a timehonored tradition: they issue anodyne statements that are economical with the truth. Central bankers are also prone to seize upon standard “solutions” that have been congealed into a crust of dogma by endless repetition and obeisance. Today, we are witnessing a well-rehearsed repeat performance.
With the onset of the financial crisis and the collapse of aggregate demand in the United States, the Federal Reserve reached for the standard textbook solution to stimulate demand. Indeed, the Fed pushed shortterm interest rates toward zero — a zone in which they have been trapped ever since.” Read more.
“Fed Up, Again”
Steve Hanke
Via the Cato Institute, December 20, 2010.
Image by Bill Longshaw / FreeDigitalPhotos.net.
