Why The Fed Will Not Be Able To Prevent Higher Inflation
The View From 1776
As former Fed chairman Alan Greenspan admitted in post-meltdown testimony to Congress, no group of bureaucrats, no matter how intelligent or how well informed, can accurately predict the timing of economic turns or determine the correct theoretical equilibrium rate of interest.
With an economy as huge as ours, one with tremendous internal momentum, the Fed is in the position of a one-man row boat attempting to dock an ocean liner being pushed by heavy winds and strong tide. Even if the Fed honestly seeks to forestall inflation, its loose money policies have already built up well nigh irresistible inflationary momentum.[...]
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