[Pen-l] Doug Henwood: Beware of bourgeois chicken-littles

["Charles Brown" <charlesb@xxxxxxxxxxxxxxxxxxxxx>]

There is a strong moral-hazard critique of Bernanke coming from the
usual suspects -- e.g. V.V. Chari, a New Classical from the
Minneapolis Fed.  I take this more seriously than the ideological
critique from libertarian conservatives and other amateurs, even if
couched in similar terms.  IMO, the New Classical critique has merit
in the longer run.  However, given the dilemmas and immediate
political constraints -- for the time being -- it's almost entirely
irrelevant.  Bernanke is not unaware of this.  But he's a Maoist in
the sense that he is more willing to admit explicitly that --
ultimately -- politics (or, as Marx would say, the "actually existing
struggles") takes command.

^^^
CB: What does the moral hazard critique warn of ? What might happen ?




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