Monday, September 24, 2012

How Clueless are Members of the National Association for Business Economics?

In a survey released today, a majority of NABE economists — 59 percent — said that current U.S. monetary policy was "about right." They said this despite the fact that no one knows if the funds from QE3 will end up in the economy or as excess reserves.

Further, Bernanke has run one of the most erratic monetary policies on record. Here are the quarterly percentage gyrations in money supply (m2) growth, since Bernanke took over at the Fed in February 2006.

Is it any wonder that the economy goes through fits of stop and go, when at some points we have  quarterly money growth of 4% (16% annualized) and at other times near zero growth?

1 comment:

  1. The facebook audience of the San Fran fed is much more qualified then we can safely conclude(see the poll results for the question “What effect do you think QE3 will have on the U.S. economy?” if you have not seen it).