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Bernanke Invokes Friedman’s Legacy in Defense of New Stimulus

Federal Reserve Chairman Ben S. Bernanke invoked the inflation-fighting legacy of the late Nobel laureate economist Milton Friedman and, for the third time in as many days, defended the Fed’s expansion of record stimulus.

Bernanke, speaking yesterday at a conference in Jekyll Island, Georgia, responded to criticism in an opinion article this week by Allan Meltzer, a Fed historian. Meltzer said in the Wall Street Journal that Friedman, who died in 2006 and influenced the thinking of Fed officials such as Bernanke, wouldn’t have supported the central bank’s decision to buy more assets.