David Andolfatto - who previously received so much criticism for pointing out that a particular Congressmen didn't know much about monetary economics - has a sequel post outlining how that Congressmen doesn't know much about monetary policy. It's very polite and clear, and hopefully shouldn't garner quite the same reaction from the crowd that swoons over the word "pinhead" but is happy to hurl around terms like "statist" and "fascist".
A lingering question... is "pinhead" more or less appropriate than "joker"? I just want to make sure I know when it's OK to "speak truth to power" and when it's not OK.
Wednesday, March 23, 2011
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Many of these anti-Federal Reserve Senators and Congressmen don't seem to have even picked up a basic textbook that illustrates how the Federal Reserve works.
ReplyDeleteIt is shocking and sad that the likes of Alan Grayson, Dennis Kucinich, and Bernie Sanders haven't even bothered to learn what open market operations are, what the FOMC does, what the mechanisms for lowering or raising interest rates actually are. No, they instead come with conspiracy theories and claims of war on the middle class.
I think I have at least two or three textbooks at home that demonstrate how central banks in various countries work. All of that information is easily accessible and understandable, and just reading that alone will allow anyone to see the bizzare ignorance shown by statesmen during hearings.
PS: It's totally OK to oppose the FR's existence, if one understands how it works. To be honest, I myself think it was once created for entirely different reasons, then was somehow empowered with very different duties later according to the time and place, and it eventually took the form it has now. The existence of many central banks in their modern form came about before people rationalised the need for them afterwards.
What irks me the most is how he constantly tells people Bernanke has doubled "the money supply" since QE1. It's so horribly misleading especially because of his hyperinflation calls.
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