bust: “It Really Is All Greenspan’s Fault”

Susan Lee calls BS on Alan Greenspan, hoisting the Maestro back up on the hook for setting in motion the biggest economic crack-up in a generation.

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One Response to bust: “It Really Is All Greenspan’s Fault”

  1. T. Lee says:

    Going deeper than the Taylor Rule analysis of one Fed failure, Gerald P. O’Driscoll Jr. explains how Fed policies naturally cause asset bubbles in this article: “Asset Bubbles and Their Consequences”, http://www.cato.org/pubs/bp/bp103.pdf

    One key quote:

    “In a vibrant market economy with technological innovation and ever new profit opportunities, the monetary policy that maintains price stability in consumer goods (or zero price inflation) requires substantial monetary stimulus. That stimulus will have a number of real consequences, including asset bubbles.”

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