All Commentary
Monday, December 6, 2010

Fed Chief Takes to Airwaves to Defend Policy

“Federal Reserve Chairman Ben S. Bernanke is stepping up his defense of the Fed’s $600 billion Treasury-bond purchase plan, saying the economy is still struggling to become “self-sustaining” without government help.… Bernanke said he thinks another recession is unlikely. But he warned that the economy could suffer a slowdown if a persistently high unemployment rate dampens consumer spending.” (Washington Post)

Risking inflation to avert an unlikely deflation.

FEE Timely Classic
“The History of Deflation” by Stephen Davies