Bernanke is Helping Destroy the Global Economy By Doing Too Much, Not Too Little
July 9, 2012
Business Insider has made a list of ‘The 13 People Who Are Destroying The Global Economy’. I agree with most of the list, but not the reasons. The most notable example of this is Business Insider’s fourth choice, Ben Bernanke.
I am not going to disagree with the lovely people at BI that Bernanke is up there with Obama and Draghi as one of the most dangerous people influencing the world economy, but the justification is misplaced:
Bernanke has also received criticism from economists like Paul Krugman for not engaging in enough monetary easing to boost the economy further. Krugman wrote recently in New York Times Magazine, “The Fed is supposed to pump up the economy when it’s running too cold, with unemployment high and inflation low. That’s where we are right now, in the Fed’s own estimation. Yet the most recent minutes, from March, show Fed officials unwilling to take any further action to boost the economy.
Of course. Bernanke is doing too little, not too much. It is the Federal Reserve’s lack of action that seems to earn him number four of BI’s list that includes a seemingly contradictory group of people including Grover Norquist, Ron Paul, Hollande, Merkel, and Eric Cantor.