News
National Journal | Fights Over Fed Likely to Continue if Yellen Becomes Next Chairman
The central bank is not doing enough to combat the nation's sky-high unemployment, the Left says. The unprecedented steps the Fed has taken to combat unemployment risk running up inflation, the Right says. "What about the other half of the Fed's dual mandate of maximum employment and price stability?" they ask as they watch Bernanke announce round after round of stimulus.
Bloomberg | Fed Faces Risk of Fourth Summer Slump While Pushing QE
During the past three years, the Fed planned to cut accommodation early in the year only to boost it after economic growth lagged behind its forecasts. Determined not to repeat the error, the Fed will probably push on with $85 billion in monthly bond purchases through the summer, said Drew Matus, a former Federal Reserve Bank of New York economist.
Econ Comments & Analysis
Real Clear Markets | The Fed Is Quantitatively Easing Americans Out of Their Jobs
As the months go by, it is becoming clear that the Federal Reserve's "QE3" program, which is supposed to be "doing something" about unemployment, is having the exact opposite effect. We can only wonder how long it will take Fed Chairman Ben Bernanke to realize this.
Forbes | Monetarism and Keynesianism: Identical Sides of the Same Adolescent Coin
A popular story promoted by Monetarist School thinkers is the one about Milton Friedman discrediting the Phillips Curve. For those not familiar with the latter, it’s the incorrect theory embraced by Keynesians that says economic growth is the cause of inflation.
