ojos Sara wrote:I think you are heading to the right direction in this discussion though. The Fed has far more influence in economy than the president even though the president is always the one who gets the glory or the blame. (kind of like NFL Quarterback, I guess lol....if you get good linemen or defense, you still get the most glory
I really should have known that considering how much we covered that in my open econ class last spring.![]()
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Paul Volcker, the Fed chairman under Carter and Reagan, was the one who "intentionally" created recession by tightening the money supply to fight inflation. However, since the effect is usually cyclical, Carter administration got it worst (double digit inflation and double digit employment) and Reagan got the beneficiary of the policy.
The good news is that oil price is dropping because USD is getting stronger again. So I think, things are not as bleak as we fear and might be looking up in the coming months and Bernanke legacy will not be as bad as it was earlier this year.
I am afraid of Paul Volcker though...he's one of Obama's economic advisor. He talked about our economy fundamental and if he put the same policy as late 70s or early 80s, I think we should be ready for a lot of pains before we see any gains. Whether the pain is necessary, I don't know


