Tuesday, February 26, 2013
My letter to the Wall Street Journal re: If Bernanke were your doctor...
Re: Bernanke Defends Easy Money Policy
Bernanke's easy money policy is a complete failure, simply reigniting another bubble, even bigger than the last, that will burst as surely as did all previous ones. Easy money disrupts the time structure of production, sending scarce capital to chase long term investments for which there are insufficient resources for their completion. The Fed has learned nothing. It is stuck in a Keynesian mindset that accepts no alternative explanation of how an economy works. It is all "aggregate demand", fostered by money printing to create a false sense of wellbeing. If Bernanke were your doctor, he would advise you to cure your fever by placing the thermometer in the refrigerator.