Comments on: The markets and Bernanke’s “taper tantrums” http://blogs.reuters.com/anatole-kaletsky/2013/09/19/the-markets-and-bernankes-taper-tantrums/ Sat, 03 Jan 2015 16:42:55 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: highlandlad http://blogs.reuters.com/anatole-kaletsky/2013/09/19/the-markets-and-bernankes-taper-tantrums/#comment-1195 Sat, 21 Sep 2013 14:48:48 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=543#comment-1195 Monatary policy has its limits. “Full employment” is a meaningless phrase without specifying what is meant by the term. The ‘Fed’ cannot achieve “strong” economic growth – it can only ensure that the financial system has sufficient liquidity: real growth can only be had through the workings of fiscal policy and tax reform, neither of which are within the gift of the Federal Reserve Open Market Committee, and both of which are beyond the reach of the current administration and congress to deliver. Essentially, the ‘Fed’ is pushing on a string. The day of reckoning is simply being put off to the future, and the fall will be all the harder for that.

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