It Doesn’t Really Matter Who Runs the Fed

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Betsey Stevenson and Justin Wolfers note that the Fed has consistently undershot its inflation target lately. Monetary policy today only makes sense if the Fed not only doesn’t care about unemployment at all, but also, for some reason, is hellbent on getting inflation under its 2% target. Matt Yglesias is contempuous: “Ben Bernanke has brought us the lowest inflation of any Federal Reserve Chairman of the postwar period. You may call it prolonged mass unemployment, but he may see it as a huge success.” Atrios goes even further:

I do wish more people who are maybe a bit more respectable than I am would start using moral language to describe the reprehensible actions of Bernanke and pals. There’s no possible analysis of the welfare tradeoffs of these policies which leads to any other conclusion than “mass unemployment is a small price to pay for keeping the rich fat and happy, or even fatter and happier.”

Time to end our failed experiment in “independent” central banking.

I don’t really disagree with any of this except for one thing: what makes anybody think that monetary policy would be any different if the Fed weren’t independent? It’s not clear to me that Tim Geithner would run things much differently, and it’s sure as hell not the case that Congress would suddenly get religion and ease up on monetary policy.

The problem, I think, isn’t Fed independence. It’s the mindset of the entire financial elite in the developed world. Until that changes, it hardly matters who runs the Fed.

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Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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