Economists Are Wrong About What Went Wrong
Second, the Bernank actually helped to save our asses back in the darkest days of financial panic.
Actually the Fed caused the recession with ultra-tight money, at least according Milton Friedman and Ben Bernanke's view of how to ascertain the stance of monetary policy. And no, it wasn't merely "errors of omission." I know that's the standard response when I make that claim, but that's because most economists have never looked at the data. The Fed brought base growth to a screeching halt between August 2007 and April 2008, triggering a recession. Then the Fed raised real interest rates on 5 year bonds from 0.57% to 4.2% between July and November 2008. Are those steps "concrete" enough?Why does this matter? Because now you have lots of people claiming that "easy money" is hurting the economy. That it's causingComplete Story »