The Fed was between a rock and hard place. To follow sound economic principles, staying pat was the thing to do; inflationary pressures are increasing. Just look at the metals and currency markets; they know what's going on. Bottom line, Bernanke had a choice between inflation and deflation, and his choice was made. I once read (don't have the link, sorry) that waaay before Bernanke became Fed Chairman, he was asked what he would do if faced between inflation and deflation. His response was to fly around major US cities in a helicoptor and dump greenbacks everywhere, thus earning him the knickname "Helicoptor". Fire up those choppers, baby, Benny Bernanke has lots of bags of US$'s to throw around!!!
2007-09-18
18:24:00
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4 answers
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asked by
maxman71
2
in
Economics