Saturday, December 06, 2008


Brad DeLong provides the balanced view of Greenspan: it is not just free market; it is also a strong belief in the power of the central bank to correct mistakes.
Fundamentally, the Greenspanist combination of massive skepticism of government intervention with overwhelming confidence in the power of the all-knowing and benevolent masters of monetary policy seems strange and unsustainable. But it is, of course, easier to sustain if you yourself are the central planner.

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