by Mark Thoma, University of Oregon (Department of Economics)

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Tim Duy: The Perils of Being the Reserve Currency

Posted on June 02, 2008

Tim Duy argues that Fed Chairman Ben Bernanke can be criticized for following the wrong playbook in his response to the financial crisis:The Perils of Being the Reserve Currency, by Tim Duy: With inflation expectations in the US on the rise, the Fed is facinga withering round of Monday-morning quarterbacking. Have policymakers becomes hostage to Wall Street? And was the ransom demanded by Wall Street excessively stimulative? I tend to think policy is excessively stimulative, and the results incredibly predictable. LastOctober I wrote:For my part, I am concerned that the Fed appears to have w...

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bernanke , china , commodity , currencies , currency , current account deficit , deficit , economy , euro , exchange rate , fed , federal reserve , greenspan , housing , housing bubble