{"id":88501,"date":"2009-12-18T10:15:00","date_gmt":"2009-12-18T15:15:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/bernankes-refusal-to-raise-the-inflation-target-is-absurd-2009-12"},"modified":"2009-12-18T10:15:00","modified_gmt":"2009-12-18T15:15:00","slug":"bernankes-refusal-to-raise-the-inflation-target-is-idiotic","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/88501","title":{"rendered":"Bernanke&#8217;s Refusal To Raise The Inflation Target Is Idiotic"},"content":{"rendered":"<p><a href=\"http:\/\/www.economist.com\/blogs\/freeexchange\/2009\/12\/from_the_horses_mouth\"><img loading=\"lazy\" decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4abd319dcf17961742b2bf26&amp;maxX=324&amp;maxY=243\" border=\"0\" alt=\"PaulKrugman-0909-1\" width=\"324\" height=\"243\" \/>Ryan Avent<\/a> is appalled, rightly, at <a href=\"http:\/\/blogs.wsj.com\/economics\/2009\/12\/17\/sen-vitter-presents-end-of-term-exam-for-bernanke\/?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+wsj%2Feconomics%2Ffeed+%28WSJ.com%3A+Real+Time+Economics+Blog%29&amp;utm_content=Google+Reader\">Ben Bernanke&rsquo;s response<\/a> to a question from Brad DeLong, who asked why the Fed hasn&rsquo;t raised its inflation target:<\/p>\n<p style=\"padding-left: 30px;\">The Federal Reserve has not followed the suggestion of some that it pursue a monetary policy strategy aimed at pushing up longer-run inflation expectations. In theory, such an approach could reduce real interest rates and so stimulate spending and output. However, that theoretical argument ignores the risk that such a policy could cause the public to lose confidence in the central bank&rsquo;s willingness to resist further upward shifts in inflation, and so undermine the effectiveness of monetary policy going forward.<\/p>\n<blockquote><\/blockquote>\n<p>Let&rsquo;s parse this.<\/p>\n<h2><strong><a href=\"http:\/\/krugman.blogs.nytimes.com\/2009\/12\/18\/the-curse-of-montagu-norman\/\">Read the full article at The New York Times &#8211;&gt;<\/a><\/strong><\/h2>\n<p><a href=\"http:\/\/www.businessinsider.com\/bernankes-refusal-to-raise-the-inflation-target-is-absurd-2009-12#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/ron-paul-75-of-the-people-want-an-audit-of-the-fed-2009-11\">Ron Paul: I&#8217;d Rather Congress Run Monetary Policy Than The Fed<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/get-ready-for-a-couple-of-hot-inflation-numbers-2009-12\">Get Ready For A Couple Of Hot Inflation Numbers<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/even-without-tarp-banks-are-still-heavily-subsized-2009-12\">Even Without TARP, Banks Are Still Heavily Subsidized <\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/CF3QmzVa9Ug\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ryan Avent is appalled, rightly, at Ben Bernanke&rsquo;s response to a question from Brad DeLong, who asked why the Fed hasn&rsquo;t raised its inflation target: The Federal Reserve has not followed the suggestion of some that it pursue a monetary policy strategy aimed at pushing up longer-run inflation expectations. In theory, such an approach could [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-88501","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/88501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=88501"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/88501\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=88501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=88501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=88501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}