Will The Fed Act?

Andrew Sullivan —  Jun 1 2012 @ 4:10pm

Timothy Lee recalls Milton Friedman's monetary policy views:

If Milton Friedman were still with us, he would be able to lend his prestige as a Nobel Laureate and his credibility with conservatives to building a consensus for monetary expansion. Had he lived to see his 100th birthday this year, he could have saved the world economy trillions of dollars of lost output.

Ryan Avent tongue-lashes the world's central banks:

[H]ere we are, with many of the world's larger economies facing difficulty, with high unemployment common across the rich world, with financial conditions deteriorating, and with political systems paralysed. Markets are fleeing into the few assets that look safe, commodity prices, equities, and currency movements are all indicating a large and sustained drop in demand expectations. And the world's most important central bankers are confused over whether or not to act out of concern over inflation and seeming terror that inflation might ever rise to and stay for a while at, oh, 3%. They seem horrified by the idea that central banks might—might—need, at some future point, to bring inflation expectations back into line, as they did in the early 1980s. Never mind, of course, that the experience of the early 1980s was a sunny day in the park compared to what the rich world has gone through since 2008, and heaven compared to what might loom ahead.