It looks to me to be more of an indictment of Keynesian economics than a Central Bank per se. The first 40 years or so after the Fed's creation, showed reasonable price stability, even considering the understandable war time inflations (which happen during all wars). After the war and after the ascendency of Keynesian dogma is when price levels went off the rails.
2 comments:
zerohedge should know to use a log scale graph.
It looks to me to be more of an indictment of Keynesian economics than a Central Bank per se. The first 40 years or so after the Fed's creation, showed reasonable price stability, even considering the understandable war time inflations (which happen during all wars). After the war and after the ascendency of Keynesian dogma is when price levels went off the rails.
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