Opposition to QE2 kicks it up a notch

A group of leading economist have joined together with Republican political strategists to take aim at the Federal Reserve’s latest money supply gusher (a.k.a. “QE2”) in an open letter to Fed Chairman Ben Bernake (the Wall Street Journal has both the open letter and the reaction).  Among the economists weighing in is Stanford’s John Taylor.

This, plus news that the economists have reached out to incoming House Budget Committee Chair Paul Ryan, ensures that monetary policy will remain a subject of serious political discussion for a while.  I repeat my assertion that this is a good thing, and reflects an electorate more knowledgeable than the political consulting industry is willing to admit.

Fed defenders, such as Rob McTeer, are already trying to smear the group: “What populists on the right and the left have in common is a distrust of the establishment, and to them the Fed personifies the establishment.”

So . . . John Taylor and Douglas Holtz-Eakin are now Ron Paul populists?

I don’t think so.  If those who defend loose money want to engage in a serious debate, we can have one; but placing the Fed on some ivory tower-like perch above the rest of us isn’t going to cut it anymore.

Cross-posted to BD

8 Responses to Opposition to QE2 kicks it up a notch

  1. Ken Reynolds says:

    You do recall that someone is always taking aim at the Fed!!! Someone must make these hard decisions, and players on the sidelines like John Taylor are free to comment just like statesmen like Bob McTeer express their opinion. And while the naysayers do not like the FRB, it still is the best system invented in our history to bring us where we are today……….

  2. D.J. McGuire says:

    So, the Fed is above reproach? When did that happen? Did I miss the memo?

    It’s a weird day when Ken Reynolds is telling yours truly a Bush appointee is above criticism. :)

  3. Ken Reynolds says:

    You do know of course that when Republicans are appointed to Our Nation’s Central Bank, they, like academicians and journalists start to get the big picture and while they may remain as Republicans, they simply modify their views to reality!! Bernanke has done this!! And remember Volcker driving up the prime rate to 21%, he was a Democrat………..

  4. D.J. McGuire says:

    No, Bernake is repeating his earlier mistake.

  5. Cytotoxic says:

    “it still is the best system invented in our history to bring us where we are today……….”

    -Housing bubb;e, chronic economic malaise, incipient inflation…yup, that’s where we are and Central Banking brought us here!

  6. Ken Reynolds says:

    dont forget GM……and the banking industry……..Federal Reserve is doing a slow measured approach to deal with the world-wide problem…………can any of you armchair economists do better?

  7. Cytotoxic says:

    Yes. Abolish the Fed, allow private currencies, and use the gold standard.

  8. Ken Reynolds says:

    Yes Cytotoxic……great ideas………..but you left out paying your doctor with chickens!!!!

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