Ben Bernanke's memoir is now out and is unapologetically pro-Fed. It is titled The Courage to Act. Here is the cover quote: The main point of Bernanke's book is that absent the Fed's interventions over the past seven years the U.S. economy would…
The FOMC decided last week against raising interest rates given its concerns about the global economy and financial conditions. While these concerns are reasonable, the FOMC’s decision highlights a growing problem that has increasingly plagued the Fed since the crisis erupted: its incredibly ad-hoc approach to monetary policy….
Did the Fed set its policy interest rate below the market-clearing or 'natural' interest rate level in the early-to-mid 2000s? Or did it simply lower its policy interest rate down to a depressed natural interest rate level during this time? The answers to these questions determine whether…