I’ve previously argued many times that the Fed is overly worried about inflation and not worried enough about the wages of the median American and about unemployment. Today Paul Krugman gives some back-of-the-envelope estimates of who benefits from the Fed’s…
Blog Archives
Revealed Preference: The Fed Favors Money Hoarders Over The Unemployed
Ryan Avent at The Economist produced some original research about what the Fed thinks: HAVING combed through the Fed transcripts the old-fashioned way, we decided to apply some fancier techniques. We plugged all 1,865 pages of central-bankery into a computer programme…
The Fed Doesn’t Care Much About Unemployment, But It Could Do Much Worse
Paul Krugman writes that wages are stagnant because unemployment is high and the owners of capital/corporations like that just fine. Their profits are up 60% above where they were before the recession began whereas compensation of employees is only up…
The Fed’s Primary Aim Is Helping The Banks
John Cassidy has an excellent article about the banking industry, but I quibble with his ending: Helping the banks isn’t the Fed’s primary aim, of course. Ben Bernanke’s monetary policy was designed to stimulate the over-all economy… But one of its…
The Fed is of the banks, by the banks and for the banks.
Brad Delong recently remarked that it is “good to know” that the Fed doesn’t have a double mandate (1. fight inflation, 2. fight unemployment), but rather a triple mandate (3. keep the financial system strong and stable). The idea the the…
How The Fed Has Exacerbated Inequality
One of the confusing concepts in public economics is how the government prints money and where it goes. The Treasury is responsible for literally running the presses that print the cash, but the Fed is in charge of deciding how…
The Fed Hates Unemployed People
The Fed is the one institution in America that is specifically responsible for centrally planning our economy by controlling the supply of money, the price of money (interest rates), and the inflation rate. Although the press and the textbooks commonly…
Medianism 