I continue to be very impressed with Ben Bernanke.
On Sunday, he gave a speech to the American Economics Association which defended the Federal Reserve from the charge that easy monetary policy caused the housing bubble. Naturally, this won’t sit well with the Fed’s critics.
If you have the time, I encourage you read Bernanke’s speech. It’s long but he uses the length to carefully consider the evidence leveled against loose monetary policy. He briefly mentions a favorite topic of his, the global savings glut, as explaining some of the housing bubble. I think this is a very important topic.
As I’ve said before, if you really want to damage another country, don’t send in tanks. Instead, lend them too much money.
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