Okay I'll state an opinion. I title this opinion:
You can't lower interest rates forever.
Looking at the above article I see that it mentions a few names of right wing economists who disagree with the current administration's handling of the whole affair. These are most certainly what one would call "White House Insiders". Let's take one name in particular and analyze his critique.
Marty Feldstein certainly has
excellent credentials. But what is his party affiliation? Well gee if you look
here then you'll read that he was CEA chairman during Reagan's reign (-actually
first term ). Even still, Marty has his
detractors.
So what exactly is Marty's
argument against
Bushonomics?
Does it have any thing to do with this?
I'm not sure. If you read
this paper you will get juicy tidbits like:
Quote:
"Monetary policy is now appropriately expansionary. The Fed's policy shows, more clearly than its words, its concern about potential economic weakness. With current economic conditions, past experience implies the federal-funds rate would be set at about 3%, well above the current 1.25% rate. Money supply is also growing much faster than nominal GDP. In other words, the Fed has gone unusually far to provide a margin of safety."
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Gee, considering the article was a plea for a worthwhile economic stimulus; I'd say the
the economy is in trouble. Of course it's for the hard core idealogues
to accept this. After all, they're still waiting for the tax cuts to
kick in.