Abstract
Some readers may be surprised that I have barely mentioned the role of monetary policy in the recent crisis. Anna Schwartz, the NBER economist who wrote the monumental monetary history of the United States with Milton Friedman,2 agrees with most economists that the Fed’s holding down short-run interest rates bears a responsibility in the housing bubble. It is now time to analyze the role of monetary policy in the 2007–2009 recession.
It is clear that monetary policy was accommodative. Rates of 1 per cent were bound to encourage all kinds of risky behaviour.
—Anna Schwartz1
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© 2011 Pierre Lemieux
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Lemieux, P. (2011). Monetary Meddling. In: Somebody in Charge. Palgrave Macmillan, New York. https://doi.org/10.1057/9780230118478_7
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DOI: https://doi.org/10.1057/9780230118478_7
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-349-29461-9
Online ISBN: 978-0-230-11847-8
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