Monday, October 24, 2005

Ben Bernanke

From what little I've gleaned so far, Dr. Bernanke strikes me as an inflation hawk. And for that, I'm glad. The Fed can either manage the money supply or manage interest rates. It cannot do both at the same time. Volcker was the first Fed chairman to take on the monetarist challenge. He flinched a bit, and the Greenspan Fed did too, but by 1990, the Fed was back into a position where it could get back to just managing interest rates.
Bernanke looks like he might have the guts to shift into monetarist policies if need be.

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