"What is Ben Bernanke to do? Since his job is simultaneously to avoid recession while protecting against inflation, and right now there’s evidence he faces both problems, he’s in a difficult spot. This is because the policy prescription to fix anemic economic growth will tend to increase inflation. But the prescription to fight inflation will suppress economic growth. You might say Bernanke is between a rock and a hard place. Or up shit creek."


iveseenbetterdays at 14:35 2008-06-30 said:
Raise rates. It's the only solution right now, and as for surpressing economic growth, there really is none anyway. I don't see how raising rates will hurt growth at this point - a bigger concern is oil and the value of our falling dollar. Raise rates, move on. Permalink

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