NRO Establishment Banker Shill: GOP should be friends with FEDSubmitted by Ulfilas on Mon, 03/04/2013 - 14:23
Weak article on why GOPers shouldn't ever question the fed.
With great highlights such as:
If Friedman had the same intellectual standing with Republicans today as Austrian economist Friedrich Hayek does, the GOP might at least be aware of the possibility that (1) it was a tightening of monetary policy in 2008 that exploded a modest downturn into the Great Recession, (2) today’s low interest rates signal tight money, not loose, and (3) bond buying is exactly the right policy when interest rates are near zero, inflation quiescent, and the economy moribund.
Instead of badgering Bernanke about inflation, Corker should have hammered him for his historically awful unemployment record, for letting nominal GDP collapse in 2008 and remain below trend since, and for a stop-and-go QE strategy that undercut the policy’s effectiveness in changing the expectations of consumers, businesses, and investors.
Yet, as it is, the U.S., afflicted by slow growth and high debt, has now stumbled into a not-so-bad economic policy of modest spending cuts plus easier money. Add in some pro-growth tax and regulatory reform, and the U.S. would arguably have the most effective economic policy of any advanced economy right now. And standing in the way of that is the Obama White House, not the Bernanke Fed.
National Review, coming to a remote Port-a-John near you.