With day after day of bleak news regarding the credit crunch -- and in particular, articles that constantly remind us that the Fed's recent actions haven't been tried since the Great Depression -- the average American is understandably perplexed. And although what I'm about to admit may not surprise many readers, it nonetheless may worry them further:
Most economists don't have a clue what's going on, either.
During both the 1970s and today, the orthodox monetary prescriptions were (and are) not working as the textbooks said they should. The Federal Reserve's toolkit of interventions were (and are) not able to deliver. FULL ARTICLEThe Problems of Central Bank Planning
With day after day of bleak news regarding the credit crunch -- and in particular, articles that constantly remind us that the Fed's recent actions haven't been tried since the Great Depression -- the average American is understandably perplexed. And although what I'm about to admit may not surprise many readers, it nonetheless may worry them further:
Most economists don't have a clue what's going on, either.
During both the 1970s and today, the orthodox monetary prescriptions were (and are) not working as the textbooks said they should. The Federal Reserve's toolkit of interventions were (and are) not able to deliver. FULL ARTICLEAll Rights Reserved ©
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