Kudlow on Bernanke and the dollar
The great Lawrence Kudlow is skittish about Ben Bernanke’s seeming disinterest in a robust greenback:
I have never heard Mr. Bernanke proselytize for a stable-dollar currency value of money. Never. Of course, like any central banker, he says heâ€™s for price stability. But the question remains how to get there and what model to use. Supply-siders like myself strongly support a price-rule model, where markets tell government what to do. But all too often it seems like Mr. Bernanke â€” who has been out there buying Treasury and mortgage bonds in a futile attempt to control their yields â€” prefers the model where the government tells markets what to do. This is a loser, as we have painfully learned in the past.
Paul Volcker watched gold in the â€™80s. So did Alan Greenspan for most of the â€™90s. But I donâ€™t think Mr. Bernanke watches gold at all. And I donâ€™t think he worries much about the fate of the dollar.