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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (43491)	3/11/2001 5:25:51 PM
From: Sam Citron	Read Replies (1) \| Respond to of 70976

What I find most extraordinary is that Krugman and Galbraith seem to have diametrically opposite views on the power of the Fed to get us out of a recession: Krugman: "if the bursting of a bubble turns into an overall recession, the fault will lie not in ourselves, but in our central bankers, who acted too little, too late. And it will be the Federal Reserve's responsibility to get us out again." Galbraith: "The Reserve owes its continuing standing to the thought that bankers have some peculiar effect on the economy and, especially, to the exceptional convenience of having a remedy that can be simply announced, without legislators and without regard for the great complexities that govern economic behavior. Also, needless to say, it now owes much to the extraordinary theatrical talent of Alan Greenspan, the Federal Reserve chairman. To rely on the Reserve as a remedy for an emerging recession is optimism carried to the point of foolishness." Amazing! Sam