Sunday, December 13, 2009

Let's Settle For "Not Being Bubble Creator"

James Hamilton asks "Should the Fed be the nation's bubble fighter". I for one would be quite content with the Fed abstaining from creating its own bubbles, by pushing interest rates too low for too long.

As for the analysis by James MacGee quoted, see my analysis of it here, in case you haven't read it already or do not remember what I wrote there.