MARC ELIAS ON “TEAM NORMAL”

It will take a lot more than their hearings testimony to redeem these people, Elias argues.


FORMER FED CHAIR BEN BERNANKE ON INFLATION

No one knows what course this round of inflation will take, but it may well NOT be a repeat of the ’70s and early ’80s, Bernanke argues.


. . . The Fed’s greater policy independence, its willingness to take responsibility for inflation and its record of keeping inflation low for nearly four decades after the Great Inflation, make it much more credible on inflation today than its counterpart in the ’60s and ’70s. The Fed’s credibility will help ensure that the Great Inflation will not be repeated, and Mr. Powell and his colleagues will put a high priority on keeping that credibility intact. . . .


The Fed chair who restored the Fed’s credibility in the early ’80s — with some very tough, painful medicine — was Paul Volcker.

When all is said and done, I argued after getting to spend a some time with him 40 years ago, the job of running the Fed, especially at times like these, is as much about psychology as economics.



YTRA

For those of you still holding it — as I am — there is reason to hope.

 

 

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