Rolf Englund IntCom internetional
Carnegie Mellon economist Allan Meltzer
Two of his books:
"Money Supply Theory"
in B. Friedman and F. Hahn (ed.)Handbook of Monetary Economics, North Holland, (1991).
With: -K. Brunner)
"Keynes's Monetary Theory: A Different Interpretation", Cambridge University Press, (1988).
In this op-ed piece in today's Wall Street Journal, Allan Meltzer adds to the growing scrutiny of Ben Bernanke and crew at the Federal Reserve
People soon recognized that avoiding possible recession overwhelmed any concern about inflation. Many concluded that inflation would increase over time and that the Fed would do little more than talk. Prices and wages fell very little in recessions. The result was inflation and stagnant growth: stagflation.
One lesson of the inflationary 1970s: A country that will not accept the possibility of a small recession will end up having a big one when the politicians at last respond to the public's complaints about inflation. Instead of paying the relatively small cost of a possible recession, the public pays the much larger cost of sustained inflation and a deeper recession. And enduring the deeper recession is the only way to convince the public that the Fed has at last decided to slow inflation.
Carnegie Mellon economist Allan Meltzer,
He warns that Bernanke is risking a disastrous replay of the 1970s, when high oil prices fueled double-digit inflation. Every time the Fed started to tighten and unemployment jumped, chairmen G. William Miller and Arthur Burns lost their nerve.
For an opposite view, see:
"One of the things Bernanke will surely be learning right now is how much pressure there can be.
The defining moment of his tenure as chairman lies ahead as he calibrates the central bank's policy response to the competing demands of the real economy and a financial system in shock.
The dilemma he faces has troubled central bankers for at least 140 years, since the Bank of England was first persuaded to declare it would act as a lender of last resort after a London discount bank collapsed and took its clients - commercial banks - down with it.
That expansion in the mission of central bankers, to include acting as guardians of a sound financial system in addition to being engineers of macroeconomic stability, opened a Pandora's box of moral hazard - the term for the problem that providing insurance will encourage excessive risk-taking - that Alan Greenspan, Mr Bernanke's predecessor at the US central bank, dabbled in when he cut rates aggressively after market shocks in 1987 and 1998.
Jean-Claude Trichet, the European Central Bank president, has cancelled plans to attend Jackson Hole for private reasons.