Thursday, November 27, 2008

Washington Times - RAHN: The Fed: Solution or problem?

Nice to see a reasoned look at abolishing the Federal Reserve from the mainstream media.

Richard W. Rahn writes for The Washington Times:

It is unambiguously clear that the Fed has failed in its charge to maintain a stable price level...

If those members of Congress who voted for the creation of the Fed in 1913 had been able to know what the results of their handiwork would be for the next 94 years, given the empirical data, it is unlikely the closely contested bill would have passed...

Gerald O'Driscoll, a former senior Fed official and very able economist, recently said it best: "The central bank is like an arsonist watching a fire he set, expressing amazement at how such an event could have happened. The Fed created a moral hazard by first, implicitly, then explicitly promising to bail investors out of risky commitments..."

Before the Fed and big government, previous bank panics usually ended quickly without "bailouts" or "economic stimulus" programs.

Washington Times - RAHN: The Fed: Solution or problem?

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