Austerians, say you're sorry.

Photographer: Melody Hahm/CNBC/NBCU Photo Bank/Getty Images

Paul McCulley: The Fed Prevented Disaster

Barry Ritholtz is a Bloomberg View columnist. He founded Ritholtz Wealth Management and was chief executive and director of equity research at FusionIQ, a quantitative research firm. He blogs at the Big Picture and is the author of “Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy.”
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This week on Masters in Business we speak with Paul McCulley, former chief economist at Pacific Investment Management Co.

McCulley, who worked closely with former Pimco chief Bill Gross for many years,  said those who claimed the Federal Reserve's extraordinary monetary policies were going to cause inflation and debase the dollar were wrong. Had the Fed followed the advice of the so-called Austerians and let the financial crisis run its course the U.S. would have found itself in the next Great Depression.  Those doomsayers, he said, owe an apology to former Fed Chairman Ben Bernanke.

The full podcast is available on iTunesSoundCloud and on Bloomberg.  Earlier podcasts can be found on iTunes and at BloombergView.com.

Next week, we speak with Harry Shearer of "The Simpsons," "This Is Spinal Tap" and "Saturday Night Live."

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

To contact the author of this story:
Barry L Ritholtz at britholtz3@bloomberg.net

To contact the editor responsible for this story:
James Greiff at jgreiff@bloomberg.net