Buttle's World

24 January, 2009

The Cliffs of Insanity

Filed under: Posts — clgood @ 14:38

Peter Robinson says of this graph:

Note, incidentally, the tiny little wiggle at the year 2000.  That represents the Y2K monetary expansion, judged huge at the time.  There are plenty of people who would argue that the Fed’s efforts to shrink the money supply afterwards—that is, Greenspan’s mopping up operation—burst the high-tech bubble, causing the last downturn.  How will the Fed mop up after this expansion?


Robinson has a followup.

Below, as Mark Steyn has noted, I provide a link to a chart demonstrating the utterly unprecedented expansion in the monetary base in which Fed Chairman Ben Bernanke has engaged over the last few months. Now economist Bruce Bartlett (who is, I should note, an old friend) has written to take me to task.  It’s no good showing what Bernanke has done, Bruce suggests, without showing the problem to which he was responding.

And Bartlett attempts to channel Friedman.


Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Blog at WordPress.com.

%d bloggers like this: