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Two Fundamental Problems Of The Fed’s Dual Mandate

Thursday, May 9, 2013 - 5:12 AM
Interesting Fed history and commentary from Time.com
the obligation to encourage economic growth and maximize employment seems to have become a bigger and bigger part of what’s expected from the Fed.
[...]
there are two long-term risks.

The first is so-called stagflation.
[...]
The biggest problem with Bernanke’s policies, in my view, is that the more he tries to compensate for the failures of other government institutions, the easier he makes it for the President and Congress to avoid coming to grips with either budget reform or a growth agenda.

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Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
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