Johnson and Kwak vs. Bernanke
April 03, 2009 at 19:47 PM EDT
Simon Johnson and James Kwak of the Baseline Scenario argue in today’s Washington Post that the Fed risks triggering an inflationary spiral despite the current gaping output gap (see also Mark Thoma’s comments here). I believe that Johnson and Kwak are perpetuating a misunderstanding about Federal Reserve Chairman Ben Bernanke’s policy intentions, namely [...]