Oh Janet, that was a pretty awful (and self-serving) speech

This short passage is enough to give you an F!:

When the crisis hit, its global scope and severity were exceptional. Central banks in the United States and other countries responded by rapidly(!) and sharply(!) reducing their policy interest rates, lowering them in many cases to near zero. In addition, in their role as lenders of last resort, central banks acted rapidly to provide liquidity to help stabilize the financial system and support the flow of credit to households and businesses, in some cases creating new lending facilities. These extraordinary and creative responses showed that monetary policymakers had internalized the lessons of the Great Depression.

Stop thinking monetary policy is interest rate policy. When you do you may start getting things right!

4 thoughts on “Oh Janet, that was a pretty awful (and self-serving) speech

  1. Now we have it. Janet Yellen is as much Federized as the rest. “It wasn’t us. Central bankers are the good guys/gals!”

    All that after I pulled out the WSJ article from 2007 saying that if we got a jump in energy prices the Fed would have to raise the unemployment rate sharply in order to bring inflation down sooner rather than later. .. and that they didn’t want to include an unemployment forecast in reports to Congress because they wouldn’t want to be held accountable for it.

    This stuff is a disgusting farce and they all should be fired.

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