Bush appoints Bernake Chairmen of the Federal Reserve

FishHooks · #1 10-24-2005, 01:26 PM

Wonder what this will mean...I've read some of this guys stuff and he seems like he will be good on the job. Greenspan was a big improvement over the previous chairman, who I thought sucked, hope this guy can be even better than Greenspan.

vulturesrow · #2 10-24-2005, 01:31 PM

Why did you think Greenspan's predecessor sucked?

This does seem to be a good choice, although I wont be happy until we get a Chairman that advocate a return to the gold standard. [img]/images/graemlins/smile.gif[/img]

coffeecrazy1 · #3 10-24-2005, 01:51 PM

I don't really have anything to contribute, but I would like to salute the return of FishHooks, one of my most respected nemeses. [img]/images/graemlins/tongue.gif[/img]

bobman0330 · #4 10-24-2005, 02:55 PM

[ QUOTE ]
This does seem to be a good choice, although I wont be happy until we get a Chairman that advocate a return to the gold standard.

[/ QUOTE ]

When people say this, they aren't serious, are they?

FishHooks · #5 10-24-2005, 06:57 PM

lol oh it's not a return, but thanks for the gesture...just thought i would post on this subject. This political forum is still too radical for me, I read a couple topics once and a while but thats about it.

FishHooks · #6 10-24-2005, 07:01 PM

[ QUOTE ]
Why did you think Greenspan's predecessor sucked?

[/ QUOTE ]
He had too many dramatic corrections to the fed fund rate. Examples. Early 70's extreme low intrest rates which helped fuel the hyperinflation in the late 70's. Then to counter the hyperinflation they raised the fed fund way too high and then helped fuel the recession of 1982. In a nutshell thats why

[ QUOTE ]
This does seem to be a good choice, although I wont be happy until we get a Chairman that advocate a return to the gold standard. [img]/images/graemlins/smile.gif[/img]

[/ QUOTE ]

I hope your not serious, our the graph of our economy would turn into a picture of the rocky mountains, with extreme fluctuations up and down.

adios · #7 10-24-2005, 07:37 PM

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.

vulturesrow · #8 10-24-2005, 07:44 PM

<blockquote>En respuesta a:<hr />
He had too many dramatic corrections to the fed fund rate. Examples. Early 70's extreme low intrest rates which helped fuel the hyperinflation in the late 70's. Then to counter the hyperinflation they raised the fed fund way too high and then helped fuel the recession of 1982. In a nutshell thats why

[/ QUOTE ]

First off, Volcker didnt become Chairman of the Federal Reserve until 1979, so he had little to do with the stagflation of the 70s. His "excessive" correction to the monetary market is widely regarded by most economists as having been a necessary and proper step. Seriously, very few people in the know will denigrate Volcker. Please dont take this to mean that I consider myself to be "in the know", but rather that I have seen very little criticism of him.

<blockquote>En respuesta a:<hr />
I hope your not serious, our the graph of our economy would turn into a picture of the rocky mountains, with extreme fluctuations up and down.

[/ QUOTE ]

Im quite serious. It doesnt need to be gold per se, but some sort of fixed standard would be nice. The new Fed Chairman supports an inflation target for monetary policy, which is a semi-acceptable substitute. By the way, back in his rebellious youth, Greenspan advocated for a return to the gold standard. You can find his missive online, just google it.

FishHooks · #9 10-24-2005, 08:40 PM

The fed's main goal is to control inflation by means of monitary policy, so to say the new chairman would do that is nothing new.

Also my bad about some of my misinformation earlier... but raising rates to around 14% was way too durastic. Especially since evey economist knows the economy has a lag, which mean thats it takes a while for things to take an affect.

FishHooks · #10 10-24-2005, 08:47 PM

[ QUOTE ]
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.