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View Poll Results: What theory is the Fed operating under
Austrian 0 0%
Kenitian 7 70.00%
MMT 3 30.00%
Voters: 10. You may not vote on this poll

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Old 07-19-2013, 07:16 AM
 
Location: San Diego California
6,797 posts, read 6,772,205 times
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Of the these three economic theories, Austrian, Keynesian, and MMT, which do you feel most closely reflects the one the Fed is actually operating under?
Do you think our current theory is working well, or would you change it if you were in charge.
Apologies for the typo... can't correct it.
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Old 07-19-2013, 07:25 AM
 
Location: The Triad (NC)
31,850 posts, read 72,988,165 times
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Quote:
Originally Posted by jimhcom View Post
Of the these three economic theories, Austrian, Keynesian, and MMT,
which do you feel most closely reflects the one the Fed is actually operating under?
Add #4) Magic 8 Ball
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Old 07-19-2013, 09:29 AM
 
4,767 posts, read 3,377,536 times
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Quote:
Originally Posted by MrRational View Post
Add #4) Magic 8 Ball
OK, beat me to it!

So, I'll go with, "Try it, you'll like it!"
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Old 07-19-2013, 01:41 PM
 
1,924 posts, read 2,161,639 times
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Well, no points for any of our players so far, including the one who was silly enough to ask the original question.
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Old 07-19-2013, 02:15 PM
 
Location: San Diego California
6,797 posts, read 6,772,205 times
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Quote:
Originally Posted by oaktonite View Post
Well, no points for any of our players so far, including the one who was silly enough to ask the original question.
I thought that at least some of the people here who pretend to understand economics would be capable of understanding the question, but as I am discovering the depth of education here is somewhat less than I had hoped.
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Old 07-19-2013, 02:52 PM
 
Location: WA
5,560 posts, read 23,107,405 times
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Quote:
Originally Posted by MrRational View Post
Add #4) Magic 8 Ball
Yup. Whatever looks like it will keep me out of hot water till I am out of this office.
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Old 07-19-2013, 03:01 PM
 
28,900 posts, read 50,242,110 times
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Evidently, a chimp with a spinner.

BERNANKE: "Okay, WonderChimp, let's see how long we'll do QE now. Ready, Chimp?"

WONDERCHIMP: "OooookOoookAhhhAhhhh..." [Spinning noises]

FLUNKY: "Mr. Chairman, the spinner is stuck between 'Slash Interest Rates' and 'Issue vague wordy proclamation that the economy is on the right track.'"

BERNANKE: "Well, I guess we do both, then. Thanks, WonderChimp! Here's a banana!"

WONDERCHIMP: "OokOokOokOok."
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Old 07-19-2013, 03:18 PM
 
Location: TX
795 posts, read 1,305,330 times
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Keynesian. QE is inherently Keynesian and Ben has, to me, generally shown Keynesian tendencies.

I wouldn't change a thing about Fed policy. My attention on change would be focused towards business investment, cash hoarding and credit deleveraging.
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Old 07-19-2013, 03:24 PM
 
1,924 posts, read 2,161,639 times
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Quote:
Originally Posted by jimhcom View Post
I thought that at least some of the people here who pretend to understand economics would be capable of understanding the question, but as I am discovering the depth of education here is somewhat less than I had hoped.
Really? The Heritage Foundation hues to what might be called an economic theory. So does the Mises Institute. But these are mere propagagnda mills. They are not serious enterprises under any legitimate understanding of the term. The Fed is quite different. It is not out to prove anything, to sell anything, or to help get anyone elected or unelected. The tasks of the Fed are to maintain long-run growth in monetary and credit aggregates commensurate with the economy's long-run potential to increase production, and to promote the goals of maximum employment, stable prices, and moderate long-term interest rates. You can't do that with stupid theory. The Fed uses the broad range of its skills and experiences to develop and implement policies that support those missions. modfiying and updating them as changing real-world conditions may warrant or dictate. What "econmomic theory" do you think that is?
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Old 07-19-2013, 03:24 PM
 
1,724 posts, read 1,373,474 times
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I would lean towards monetarist, but both monetarist and Keynesian monetary policy are largely demand side management. While Bernanke may lean more towards a monetarist school of monetary thought, he has called on the President and Congress to do more, essentially invoking Keynesian fiscal policy to accommodate his loose monetary policy. I agree with him. The main culprit holding back recovery are Congressional Republicans.

As far as I am concerned, Bernanke is the only responsible macro economic agent. Without the expansionary policy the Fed has been conducting, the economy would be in worse shape.

Congress and the President are failing to live up to their half of the Full Employment Act of 1946. While Obama and the Dems are not beating the drum loud enough on what to do, Republicans are selfishly concerned about themselves and would rather obstruct for the sake of obstructing.

There is only so much that the Fed can do being stuck at a ZLB interest rate. The only other tool in they have is capping or fining ER, which I don't believe is a tool that they should use.
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