Let The Economy Keep Cruising

History shows that it's all too easy for Federal Reserve policymakers to stumble when the ground shifts under their feet. After the oil price shock of the 1970s, the Fed ran an excessively loose monetary policy, allowing inflation to entrench itself. And too-tight monetary policy in the early 1930s was the main reason why the Great Crash of 1929 turned into the Depression.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.