In a recent Bloomberg column, former New York Fed President Bill Dudley echoes a conventional Fed narrative, contrasting Fed interest rate cycles under two supposedly distinct Chairmen. “Powell will need to find a way to persuade [markets] that he has no intention of behaving like Arthur Burns…

(Previous installments of "The Keynesian Myth" are here and here.) Balancing Act As Richard Adelstein (1991, p. 177) observes, far from taking Keynes's advice that he ratchet-up the federal government's deficit spending, "Roosevelt held fast to the ideal of a balanced budget and remained the chief opponent…

Oil pump jacks at sunset sky background. Toned.

Ever since Federal Reserve Chairman Jerome Powell described cyclical or COVID-related elements of inflation as "transitory" (an ambiguous phrase now retired), critics repeatedly seized on year-to-year changes in price indexes as evidence that inflation was instead accelerating every month. As I have noted before, however, the stubborn…