Raising the Bar

[Max Sawicky]

By now there is no hipness in calling
for the Fed to lower interest rates.
Krugman did a piece on it.
James Glassman, the Post's libertarian
financial columnist has done it.  Today
Robert "no relation" Samuelson chimed
in, along with Jack Kemp.  Kemp is
also calling for world adoption of
the gold standard, but this only shows
he has a sense of humor.

The chief holdouts seem to be in the
Clinton Administration, notably Larry
Summers.  [At EPI we're considering the
inauguration of a new award, to the
economist who destroys the most economic
output by the age of 40.  Obviously
Summers and Jeff Sachs are leading
contenders.  Other nominations are
welcome.]

A related note:  what with the massive
breach of the "NAIRU" and the present,
manifest ineptitude of the Great
Economic Minds in charge of world
affairs, it is not too early
to think about a new political
campaign, the gist of which is
"mainstream economics is full
of shit."

A serious question is what additional,
simple (if major) actions, such as currency
and capital controls, spending the budget
surpluses, etc., are also called for
presently.  I'm thinking in terms of points
of political agitation.

Another q. is why, in the face of all this,
Greenspan and the Fed remain Sphinx-like.

The next Fed Board of Govs meet is 9/29,
in Washington.

MBS