tag:blogger.com,1999:blog-3758330678390419129.post2699469276967263430..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: It's Official, Bernanke Is Confused as to What Monetary Policy IsRobert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3758330678390419129.post-28722199949122935952010-01-04T11:20:08.385-05:002010-01-04T11:20:08.385-05:00Looks like Dr B.S. just does not want the phrase &...Looks like Dr B.S. just does not want the phrase "interest rate" to come out of his mouth in public. Since it's near zero now, there could be only one perceived reason for him to mention the phrase, or so the markets may interpret it. Also you forget about his poker skills that you mentioned earlier. And then it is always possible to say one was misunderstood, especially for the fedAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-34535070255590182472010-01-03T18:18:09.324-05:002010-01-03T18:18:09.324-05:00@savecapitalism
If there was no central bank, or ...@savecapitalism<br /><br />If there was no central bank, or if the central bank maintained a fixed money supply. Then there would be no manipulations of interest rates and the money supply would remain constant, neither increasing or decreasing.Robert Wenzelhttps://www.blogger.com/profile/12653378186315529211noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-496632298616490792010-01-03T17:44:44.018-05:002010-01-03T17:44:44.018-05:00But shouldn't the money supply - all other thi...But shouldn't the money supply - all other things being equal - be shrinking at an enormous rate right now (if it wasn't for Bernanke&Co)? Doesn't this mean that the monetary policy is - compared to a market-rate scenario - still easy right now? <br /><br />And isn't this what should be allowed to happen, namely that banks fail, credit gets revoked, debt wiped and the system Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-25974237286287826012010-01-03T14:19:38.299-05:002010-01-03T14:19:38.299-05:00Very enlightening. Your focus on using money supp...Very enlightening. Your focus on using money supply to tell you if the Fed is above or below the real rate opens the eyes of this armchair economist and makes perfect sense. Thanks!Anonymousnoreply@blogger.com