With my crazy traveling I didn’t post last week’s article on “Investors Finally Fear the Inflation Precipice.” Here’s an excerpt:
When Bernanke made his infamous appearance on 60 Minutes, most analysts understandably focused on his absurd claim that he wasn’t printing money. But the thing that most alarmed me was this exchange (starting at about 7:20 in this video):
BERNANKE: There really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation at the appropriate time. …
Q: You have what degree of confidence in your ability to control this?
BERNANKE: A hundred percent.
Now that should be terrifying. Realistically, Bernanke shouldn’t have 100 percent confidence that he can control his toaster. I mean, he might turn the dial up too high, or someone might spill water on it. It could happen.
Then today I have an article explaining why economists use different monetary aggregates (M1, M2, etc.) and how Rothbard/Salerno decided to engage in product differentiation. In all seriousness, I think I give the rationale behind some of the classifications that you wouldn’t get in a standard list of definitions.