From the same guy who wrote the Hit the Road article for Newsweek (which was on the cover).>> This year’s hit paper was published ahead of Jackson Hole: William White’s “Ultra Easy Monetary Policy and the Law of Unintended Consequences.” Get this: “Ultra easy monetary policies have a wide variety of undesirable ... unintended consequences. They create malinvestments in the real economy, threaten the health of financial institutions and the functioning of financial markets, constrain the ‘independent’ pursuit of price stability by central banks, encourage governments to refrain from confronting sovereign-debt problems in a timely way, and redistribute income and wealth in a highly regressive fashion.” Amen. Monetary policy alone is not a sufficient remedy for our economic ills. All central banks have done, White argues, is “to buy time” for governments: “If governments do not use this time wisely, then the ongoing economic and financial crisis can only worsen as the unintended consequences of current monetary policies increasingly materialize.” Of course, this is not the kind of technical language you can use at a party convention. At Tampa last week, delegates had to humor Texas Rep. Ron Paul with a gold- standard commission to investigate restoring the dollar to a “metallic basis.” This is an idea that appeals only to those who know no economic history. The smart position is Paul Ryan’s—that the Fed should focus solely on price stability and not attempt to print its way to full employment. The combination of Ryan’s speech and White’s paper made last week an inspiring one. The Fed has bought us time. Now we need an administration that understands, as Paul Ryan does, just how little is left. <<http://www.thedailybeast.com/newsweek/2012/09/02/niall-fergu...Somewhere in the article, it talks about inflation being 2%. Yeah - because they leave out food and gas. I don't believe it.arrete - there are already effects of inflation, but the elites don't see them.
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