It's Not Easy Managing Green (the Money Supply, Interest Rates, Inflation...)

Big Ben

As mentioned in this article from New York Times (a source seldom quoted by this blogger), Ben Bernanke's Fed Panel Is Divided on Direction.  Seems "too little too late" is the new "too much too soon" when it comes to his attempts to "manage" interest rates and inflation.

Granted, it's a thankless job.  But monetary theory, the antithesis to Keynesian economics (whose theories the current administration has conclusively disproved), tells us that these economic factors are the results of supply and demand.  These may be positively influenced by communicating clear policies and sticking to them.  Ultimately, however, they are set by the market, meaning that attempts to manage them require market intervention, which tends to be costly and short lived. - David