Washington, Bernanke, Still Fighting Wrong War: Amity Shlaes
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Sometime soon the U.S. Senate is expected to confirm Federal Reserve Chairman Ben Bernanke for a second term. Soon the Senate will also vote on legislation to overhaul the financial industry.
Neither action directly determines the U.S. monetary outlook. Yet a monetary assumption underlies all of Washington’s finance- or banking-related activity these days. The shared belief is that the potential for deflation or credit-and-deflation-related spirals deserve our near-exclusive attention.