AEIdeas

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Discussion: (3 comments)

  1. You and Kudlow could not be more wrong. The Fed has propped up the treasury market and created the biggest bubble in history. If we used the same methodology to measure CPI as we did when Kudlow was working for the Reagan Administration we would see that inflation stood at around 4.5%, not the less than 2% that is being reported today.

    What we have is a fake economy being analyzed by Keynesians but pretend that they understand how the real economy works. Have you noticed that CNBC has dumped Peter Schiff, who warned about the housing bubble while they kept all the guests who were hyping the same bubble? That tells us all that we need to know.

  2. Benjamin Cole

    Again, I must congratulate Pethokoukis for thinking like Milton Friedman, and not modern-day “conservatives” about issues relating to the Fed.

    Milton Friedman told Japan and the Bank of Japan to print more money and buy bonds with it, and keep doing so until they had growth an inflation. They did not listen—and their economy has never recovered.

    Tight money always and every minute is not what “conservatives” should be about. In fact, tight money always and every minute leads to economic contractions and arguments for …you got it, more government.

    There is a time and place for tight money. But not now.

    1. Milton Friedman told Japan and the Bank of Japan to print more money and buy bonds with it, and keep doing so until they had growth an inflation. They did not listen—and their economy has never recovered.

      But that is what the Japanese did. They kept printing money and buying assets to prevent the market liquidation that was necessary to get the economy growing again. Milton was a central planning type; hardly the advocate of free markets that many are trying to make him out to be. While he was great on some issues deep down he was a moral relativist and a statist.

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