All Commentary
Wednesday, August 11, 2010

Worried Fed Will Create More Money


“Federal Reserve officials, acknowledging that their confidence in the recovery had dimmed, moved again on Tuesday to keep interest rates low and encourage economic growth. They also signaled that more aggressive measures could follow if the job market and other indicators continued to weaken. With short-term interest rates already close to zero, the Fed’s policy makers have relatively few tools available to encourage consumer and corporate spending. So they now plan to use the proceeds from the Fed’s huge mortgage-bond portfolio to buy long-term government debt.” (New York Times, Wednesday)

Hair of the dog.

FEE Timely Classic
“Government Must Stimulate to Avoid a 1937-Style Recession? It Just Ain’t So” by Ivan Pongracic Jr.