When a central bank sets a two-percent price inflation target as a guide for monetary policy, it is targeting an arbitrary construction of economic statisticians.
The next economic crisis will be directly tied to the last economic crisis and the policies the Fed used to “solve” it. As such, it should be called the Bernanke-Yellen Crisis.
A falling money supply is not the cause of economic contractions. It is usually just a symptom of a larger problem resulting from money-creation out of thin air.
Though the descent of Keynesian doctrine from intellectual respectability can be denied no longer, it still gravely threatens sensible monetary policy.
