By Mario Rizzo
I am not happy at the prospect of the Congress making monetary policy. I am also not happy about the Congress making “countercyclical” fiscal policy. But I am really not happy about the extraordinarily poor quality of the arguments being made by economists so desperate to maintain the “independence” of the Fed. The arguments seem to boil down to mentioning what the Fed has done right (or may be construed to have done right) and ignoring the Fed’s role in creating crises in the past.
Who taught these economists how to make an argument?
I expect to say more later. But for now, please check out Jerry O’Driscoll’s post at the Cato blog.