Re: Bush appoints Bernake Chairmen of the Federal Reserve
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Paul Volker was Greenspan's predecessor and he was the pioneer Fed chairman more or less of the "New Keynesian" school of thought regarding monetary policy which targeted growth in the money supply to make a long story short. Volker vowed to "break the back" of runaway inflation which he more or less did which ushered in the period of disinflation which we've had for the last 25 years or so.
[/ QUOTE ] I'm not familiar with "New Keynesian" economics, if fact never heard that term used. But i definatly dont agree with the principle of John Keynes, and how gov't spending should be the thing to fuel economic growth.
We haven't had disinflation for 25 years, if that was the case we would be in a state of deflation. The target inflation rate changes constantly as well.
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