Re: [Pen-l] Larry is still at it

[raghu <mraghu01@xxxxxxxxx>]

On Mon, Jun 8, 2009 at 1:22 PM, Michael
Perelman<michael@xxxxxxxxxxxxxxxxx> wrote:
> I always admired Bernanke, the economist. I would have thought that he [at
> least before he associated himself with GWB] would have been an ideal Fed
> chair at a time like this. Has he stood up to any of the big banks yet?


I don't understand this exalted opinion many people have of him. Even
in his famous study of the Great Depression, he seems to be biased in
favor of monetarist (Friedmanist) responses instead of fiscal
(Keynesian) to a credit contraction. Under that ideology of course,
the government would bailout banks with unlimited taxpayer money and
then balance its books by fiscal tightening which is exactly the
prescription he seems to be following now.

In his speech on Milton Friedman's 90'the birthday, he seems to
suggest that "endogenous money" was a concept invented by Friedman
which even by my limited knowledge of economic history seems to be
nonsense.
http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/default.htm

Here's what he ends that speech with:
"Let me end my talk by abusing slightly my status as an official
representative of the Federal Reserve. I would like to say to Milton
and Anna: Regarding the Great Depression. You're right, we did it.
We're very sorry. But thanks to you, we won't do it again."




-raghu.

--
"I like to reminisce with people I don't know." - Steven Wright
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