Ben Bernanke And Janet Yellen’s Inflation Mystification Ails The Fed

The re indicates that What caught my attention is PolicyBen Bernanke And Janet Yellen’s Inflation Mystification Ails The FedByJohn Tamny, Contributor

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More Vice Chair and President Obama's nominee fto succeed Bernanke, listen during a meeting of the Board of Governors of the Federal Reserve System to discuss the final version of the so-called "Volcker Rule" December 10, 2013 in Washington, DC (something worth watching)

The rule was adopted unanimously during the meeting that will ban prietary trading by large banks

Conversely, (Photo by Alex Wong/Getty Images)Getty Images Fed officials don’t grasp what inflation is

Nevertheless, If they understood what it is, they wouldn’t be so worried the Fed’s so-called independence

On the other hand, For background, contemplate a recent New York Times opinion piece by former Federal Reserve Chairs Ben Bernanke and Janet Yellen, in today's financial world

Moreover, While they’re no longer at the central bank, their ideas inflation remain

And what they imagine inflation to be speaks to the real blem at the Fed

Furthermore, ” They assert that “The result, however, was stagflation. ” Bernanke and Yellen mistake causes

Moreover, Inflation is a shrinkage of the monetary medium, in our case the dollar

Nixon’s act was itself inflation as any action meant to shrink the exchangeable value of the exchange medium is

Moreover, Nixon got the dollar he wanted, which means he got inflation (noteworthy indeed)

Moreover, As for Nixon’s subsequent pressuring of Burns, it’s plainly ignored by Yellen and Bernanke that individuals borrow money for what it can be exchanged for, in today's financial world

Moreover, The data indicates that ’s a reminder that credit isn’t decreed by central bankers, rather it’s duced privately (something worth watching)

On the other hand, Which is just a that no one just borrows to borrow, rather they borrow to get

In other words, Burns couldn’t have decreed credit cheap and easy even if he had wanted to

No, such a view isn’t serious

Conversely, MORE FOR YOU There’s no pain associated with ending inflation simply because there’s no pain to be had in monetary media that are consistent as measures of value

When it’s remembered that the sole purpose of money is to facilitate the exchange of goods, services and labor, it’s easy to see that there’s nothing economically harmful or difficult arresting inflation

The latter is as simple as associating the currency in question with stability as a measure of value (something worth watching)

Which is a reminder that inflation is a policy choice, not some long and painful hike back from the verbial abyss

On the other hand, Just tie the dollar to something known to be stable, and will comply

However, Just as President Nixon was able to cruelly foist inflation on the U

And the world by severing the dollar’s link to gold, any president today (including Donald Trump) could end inflation with a decree to resume dollar-price stability born of a gold peg, or whatever peg the president deems most associative with stability

On the other hand, All of which speaks to the real blem at the Federal Reserve right now, in this volatile climate

Nevertheless, What the data shows is ’s not “independence” or lack thereof, given the current landscape

The Fed is a political creation so it’s never been independent to begin with (noteworthy indeed)

What’s needed is a trusted dollar, but for the blem that neither Bernanke or Yellen, nor for that matter officials at the U (fascinating analysis)

Treasury, understand what inflation is, in this volatile climate

Moreover, We have a blem of inflation mystification, nothing else

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