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This excellent article by Austrian theory economist Frank Shostak appeared Friday on Mises.org. — JH Bernanke Loosens Up December 21, 2012 On Wednesday December 12, 2012 Fed policy makers announced that they will boost their main stimulus tool by adding $45 billion of monthly Treasury purchases to an existing program to buy $40 [...] The major issue, [Mr. Bernanke] said, is “whether or not there is in fact a sustained recovery going on in the labor market, or are we stuck in the mud?” Mr. Bernanke added a wrinkle, saying the central bank “would certainly want to react against any increase in deflation risk.” This was from Chairman Bernanke’s testimony [...] Federal Reserve Chairman Ben Bernanke delivered a bleak new assessment of the U.S. economy to lawmakers on Tuesday but remained guarded about what, if anything, the Fed would do about it. Chairman Bernanke remains guarded because he’s run out of “arrows” in that metaphoric quiver that reporters use to refer to Fed policy options. [...] Bernanke Seen Accepting Higher Inflation is Bloomberg.com’s current lead story. “The chairman seemed to suggest they will tolerate a misdemeanor on inflation as unemployment continues to fall toward their goal” over several years, said Mark Spindel, chief investment officer at Potomac River Capital, a hedge fund that manages $250 million in Washington. Deflation for thee, you [...] In the news today are two enterprises whose fortunes have diverged so dramatically over the past decade that I wish to comment. I think that the Austrian economists Schumpeter and von Mises would also have been impressed. On the one side is an ancient people whose government borrowed hundreds of billions of euros over about [...] For months, even before the end of QE2, analysts and prognosticators have been saying the Fed will have to do another QE and another, endlessly. These folks were surprised when it didn’t come last month, and predicted confidently that it would come this month especially because Bernanke extended the September meeting to two days. I [...] By Jeff Harding Fed Chairman Ben Bernanke warned Congress about the risks of Obama’s massive spending schemes: Federal Reserve Chairman Ben Bernanke warned Congress and the White House that the U.S. economy will suffer if they don’t move soon to rein in the federal budget deficit, which the Fed chief blamed for helping to push long-term [...] By Jeff Harding Fed Chairman Ben Bernanke gave a startling commencement address for the Boston College School of Law Class of 2009 this week. He admitted an apparent turnabout of his fundamental views of economics. No news media picked up the significance of what he was saying. After the introductory and [...] |
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