tag:blogger.com,1999:blog-2761684730989137546.post2269197281271600421..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Top Fed official doesn't understand monetary operationsmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2761684730989137546.post-66478381088822894462010-03-26T13:41:35.628-04:002010-03-26T13:41:35.628-04:00TB: Yes, it's a crazy oomment. They forget tha...TB: Yes, it's a crazy oomment. They forget that it's all about setting rates, not about what type of security they hold. If they want mortgate rates lower they buy MBS. If they want the price of Beanie Babies lower they buy Beanie Babies. They don't even seem to understand why they bought them in the first place!!!mike normanhttps://www.blogger.com/profile/03296006882513340747noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-1414947953305408152010-03-26T12:36:02.595-04:002010-03-26T12:36:02.595-04:00In the last couple days Hoenig, Bullard, and Berna...In the last couple days Hoenig, Bullard, and Bernanke have all said that the Fed needs to get back to holding only Treasury Securities. Why should the central bank not hold other types of debt or securities?Ryan Harrishttps://www.blogger.com/profile/04815033054435303399noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-5794513063818428372010-03-26T09:04:28.693-04:002010-03-26T09:04:28.693-04:00The problem as I see it, Mike, is twofold:
First,...The problem as I see it, Mike, is twofold:<br /><br />First, mainstream economics has been infused with neoclassical ideology, perhaps permanently. It may work in the long-term, but as Keynes said, in the long-term we're all dead.<br /><br />Second, we've never really had a merit-based system. It's really about who you know. That means a lot of these guys who are in there running policy have the connections or are part of some, "Good ol' boy" network.<br /><br />Sad but true.mike normanhttps://www.blogger.com/profile/03296006882513340747noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-26791762305060528692010-03-26T08:41:19.011-04:002010-03-26T08:41:19.011-04:00Isn't it great that we have a Fed that is movi...Isn't it great that we have a Fed that is moving in exactly the opposite direction that our current needs require? To worsen matters, their policies aren't even coordinated with fiscal policy. It's as if no one in charge even understands basic macroeconomics.<br /><br />By the way, how can it ever be justified to have so many non-economists in control at the Fed?Mike Sandiferhttps://www.blogger.com/profile/04266779805691997171noreply@blogger.com