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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: Travis_Bickle who wrote (70273)	6/8/2006 1:33:23 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 360978

Exactly. "The benefit of appointing a hawkish central banker is the increased inflation-fighting credibility that such an appointment brings. The public is certainly more likely to believe an inflation hawk when he promises to contain inflation because they understand that, as someone who is intrinsically averse to inflation, he is unlikely to renege on his commitment. As increased credibility allows the central bank to achieve low inflation at a smaller cost than a non-credible central bank can, the president may well find, somewhat paradoxically, that he prefers the economic outcomes achieved under the hawkish central banker to those that could have been obtained under a central banker with views closer to his own and those of the public." Ben Bernanke, October 8, 2004 federalreserve.gov