This comprehensive list of the Fed's functions gives the lie to the notion that there has been "too little regulation" of financial markets. Anyone who makes such an argument is either ignorant of the truth or is lying.
If anything, all the rescue packages and all the massive pumping by the Fed has made things much worse as far as the underlying economic bottom line is concerned.
Private enterprise could have handled production of military goods better than controls actually did.
"It is no coincidence that Mankiw's worldview leads him to literally propose destroying the currency in order to fix the economy."
But if you follow the Austrian recipe of allowing liquidation of bankrupt firms and debt, allowing prices to fall without monetary inflation, not propping up employment or subsidizing unemployment, and not discouraging hoarding, you will end up with the quickest possible recovery and minimize the magnitude of economic pain.
The bonds will be backed by the usual way that the government gets money, which is to tax it or inflate it away.
One of our top priorities must be to get rid of a monetary system that contributes to artificial money creation and credit expansion and thus to recurring boom-bust episodes in production and employment.
The Panic of 1819 lasted about three years — the Great Depression lasted well over a decade. When looking for solutions to our current mess, we should study a winning team.
What a warped view of how the market economy works, to think that savings and foreign investment can cripple an economy.
Incessant creation of fiat money by government central banks will serve to engender more speculative booms to lure investors into financial ruin.
