Olio, Bouillabaisse: Assorted Links
1. Watch an excellent video of Tyler Cowen discussing blogging, recorded at the Kauffman Foundation's Economics Blogger Forum in February.
2. Read an excellent profile of Fed Chair Ben Bernanke in today's Washington Post, "How Bernanke Staged a Revolution": This chairman set out to lead as a civil servant rather than a celebrity economist. Facing a thundering financial collapse, he has reinvented the Federal Reserve.
1 Comments:
Bernanke has some responsibility for creating this recession. The Bernanke Fed kept a restrictive monetary stance for too long, i.e. the Fed Funds Rate at 5 1/4% from June 2006 to September 2007, and fell behind the curve easing the money supply. The Bush tax cut in early 2008 gave the Fed time to catch-up. However, I give credit to the Fed for easing the money supply, while commodity prices were reaching new highs till mid-2008.
Global imbalances were correcting slowly, until Lehman was allowed to fail in mid-September 2008, which coincided with the Ted Spread rocketing and froze the credit market quickly. Consequently, global imbalances began to correct suddenly, while the economy, and stock market, fell off a cliff. However, the U.S. navigated surprisingly well in uncharted waters till September 2008.
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