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Home Publications Blogs Beat the Press Former Fed Governor Warns That If Monetary Policy Is Too Loose, We Could Get a Recession That Is Not as Severe as the Current One

Former Fed Governor Warns That If Monetary Policy Is Too Loose, We Could Get a Recession That Is Not as Severe as the Current One

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Wednesday, 13 October 2010 04:41

It would have been useful to point this out in an article that presented the views of former Fed governor Robert Heller. Mr. Heller's views were presented as those of an inflation hawk who was worried that the Fed was going too easy in trying to boost the economy. He noted the inflation of the 70s and the recessions in 1980 and 81-82 that brought the inflation rate down.

It would have been worth reminding readers that these downturns were far less severe, measured in duration and increase in unemployment, than the current downturn. If the possible bad outcome is not as bad as the current situation, then there would appear to be little basis for concern about excessively easy monetary policy.

Comments (3)Add Comment
That's Odd
written by libhomo, October 13, 2010 7:08
More of the articles I've seen on Yahoo and Google Finance on the subject have been warning about deflation, not inflation. As usual, the Fed's overlords care more about their fellow banksters than they do about the country.
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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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