Tuesday, November 2, 2010

A "Conservative" D.C. Think Tank Calls for More Money Printing from Bernanke

The American Enterprise Institute in its Economic Outlook calls for more money printing by the Fed.

John H. Makin writes in the November 2010 issue
The U.S. inflation rate is falling, with the Consumer Price Index at 0.8 percent--down from 2.6 percent in 2006. Some observers are calling for tighter monetary policy, but students of the Great Depression know that such action in the face of rising deflation risks is dangerous. Additional quantitative easing, as proposed by Federal Reserve chairman Ben Bernanke, is a necessary, though not sufficient, measure to preempt deflation and a possible economic relapse.
Obviously, Keynesian to the core, with no clue of how the business cycle develops.

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