Tuesday, August 2, 2011

Bernanke's Just Right

Said Mankiw: "The public should soften
Its critique of our central bank boffin;
Were I in his stead,
I would not have the Fed
Giving stimulus more or less often."

Harvard economics professor (and Romney economic advisor) Greg Mankiw writes in The New York Times:

Mr. Bernanke has worked tirelessly to shepherd the economy through the worst financial crisis since the Great Depression, and yet, for all his efforts, seems vastly underappreciated.
While left-leaning critics find the Fed's stimulus measures wanting, those on the right obsess over inflation, expecting it to pop out at any moment. Cool it, says the professor to both camps. After all, left-wingers, the Fed has used up all the stimulating weapons in its arsenal, and could not do more without risking a dangerous rise in inflation over the target rate of 2%, where, right-wingers, it has consistently averaged throughout Bernanke's five years at the helm. In other word's Papa Bernanke's porridge is neither too hot, nor too cold, but just right.

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