Fed Up

by Don Boudreaux on August 23, 2009

in Current Affairs, Financial Markets, Frenetic Fiddling, Monetary Policy, Myths and Fallacies

Did the Federal Reserve Bank save the economy? “No!” says George Selgin in this interview with the Atlanta Journal-Constitution. Here’s the nutgraf:

Selgin believes the Fed, after helping fuel the housing bubble, has morphed from central banker into central planning agency with a corporate welfare department.

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jorod

We have the bubble up economy instead of the trickle down..

Bret

Specifically Selgin's criticizing the Fed's bailouts (as opposed to the monetary policy). That I agree with.

vikingvista

It is my understanding that Selgin opposes monetary policy.

Bret

Yes, but that's not what he focuses on in this particular article. I'm skeptical of his calls to neuter or entirely eliminate the Fed.

OregonGuy

Doc--

This is my worst nightmare.

My advisors at Oregon State were Tom Bible and Dick Towey. Professor Towey worked at FDIC. He knew money and banking--and macro--side to side. It seems the only regulatory agency left that still believes in markets is FDIC.

Am I wrong?
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