What would a liberal Federal Reserve do:

Discussion in 'Economy' started by EdwardBaiamonte, Feb 11, 2012.

  1. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    To find out all we have to do is ask Bernie Sanders and remember that Obama voted to the left of Sanders while in the Senate. God help us all if Obama ever got to appoint a liberal inflationist Fed Chairman.

    Oh, and we might remember that when their God, Keynes, was asked about the future consequencs of his ultra easy monetary policies he said, don't worry about the future, we'll all be dead.


    Bernie Sanders: Another very important issue is with unemployment so high, how can we strengthen the Fed's full-employment mandate[ with inflation] and ensure that it conducts monetary policy to achieve maximum employment? [ through inflation]. In other words the Fed has a number of mandates and one of them is to control inflation. But one of them also is to pursue policies that lead to full employment. Is the Fed doing that in an adequate way? Well I would argue that by definition when you have 16% of people unemployed and underemployed it really is not.
     
  2. Oddball
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    They'd do exactly what they've done since 1913.

    Lend out "money" that doesn't exist, charge interest for it, inflate the hell out of the currency and line their pockets in the process.

    Then, they'd bankroll endless stupid foreign wars, the socialistic welfare state, massive Ponzi schemes, endless bailouts of states, cities, corporations and foreign nations....
     
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  3. PredFan
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    The same thing a conservative Fed would do, and then they'd call it brilliant and give obama the credit.
     
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  4. DSGE
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    DSGE VIP Member

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    An NGDP target can fix the unemployment problem without resulting in inflation.

    That's a gross misunderstanding of the Keynes quote. Here's the full quote:

    "But this 'long run' is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again."

    What he's saying isn't, obviously, that we shouldn't care about the long run. What he's saying is that economists are taking the easy way out only ever considering the long run. We need not only theories of the long run, but also theories of the short run.
     
  5. Oddball
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    Oddball BANNED Supporting Member

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    Nobody can "fix the unemployment problem"....This is the fatal conceit of socialistic central planners coming out of the chute.
     
  6. DSGE
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    DSGE VIP Member

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    Nope, it's just an application of monetary theory.
     
  7. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    You ought to call Ben right away and tell him what a genius you are!!!
     
  8. Oddball
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    Oddball BANNED Supporting Member

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    What it is is monetary central planner witch doctors, like those at the Fed, trying to tell us that you really can push strings.
     
  9. DSGE
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    DSGE VIP Member

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    What the fuck are you talking about? You think Milton Friedman was a central planner witch doctor? :eusa_eh:
     
  10. Oddball
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    He worked with and enabled some of the greatest authoritarian economic witch doctors of all time, including FDR....In fact one of Friedman's greatest regrets is that he foisted income tax withholding upon the nation.

    Unlike some, I don't consider Friedman to be an economic demi-god.
     

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