Comments on: Greenspan the Excellent Obfuscator http://alephblog.com/2009/03/11/greenspan-the-excellent-obfuscator/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Mon, 15 Mar 2010 23:45:00 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Iohannes http://alephblog.com/2009/03/11/greenspan-the-excellent-obfuscator/comment-page-1/#comment-21151 Iohannes Fri, 13 Mar 2009 07:47:00 +0000 http://alephblog.com/?p=1503#comment-21151 Admirer of Hayek that I am, I don't disagree with you. I was only calling attention to a rhetorical oddity in the piece. As it is, there is a good micro foundation for the view that faults lax monetary discipline for the bubble. When folks like Greenspan start shifting the brunt of the blame to excessive global aggregate savings or insufficient aggregate demand, macro gets disconnected from micro--a mistake to which Chicago and the Keynesians alike are prone. BTW, speaking of the Austrians, someone at Lew Rockwell's blog <a href="http://www.lewrockwell.com/blog/lewrw/archives/025800.html" rel="nofollow">has posted</a> an interesting quotation apparently conflicting with Greenspan's defense. Admirer of Hayek that I am, I don’t disagree with you. I was only calling attention to a rhetorical oddity in the piece. As it is, there is a good micro foundation for the view that faults lax monetary discipline for the bubble. When folks like Greenspan start shifting the brunt of the blame to excessive global aggregate savings or insufficient aggregate demand, macro gets disconnected from micro–a mistake to which Chicago and the Keynesians alike are prone.

BTW, speaking of the Austrians, someone at Lew Rockwell’s blog has posted an interesting quotation apparently conflicting with Greenspan’s defense.

]]> By: David Merkel http://alephblog.com/2009/03/11/greenspan-the-excellent-obfuscator/comment-page-1/#comment-21150 David Merkel Fri, 13 Mar 2009 05:14:11 +0000 http://alephblog.com/?p=1503#comment-21150 Johannes, Friedman was focused on one thing... measured CPI inflation. By that weak standard, the Fed succeeded. But loose monetary policy has a real cost in the buildup of badly underwritten private debt. Friedman's views of the Great Depression are closer to those of Keynes than the Austrian School. As for Greenspan, he served the powers that be, not allowing anything that would disappoint them in the short run, building up for a big disappointment in the long run. Johannes, Friedman was focused on one thing… measured CPI inflation. By that weak standard, the Fed succeeded. But loose monetary policy has a real cost in the buildup of badly underwritten private debt. Friedman’s views of the Great Depression are closer to those of Keynes than the Austrian School.

As for Greenspan, he served the powers that be, not allowing anything that would disappoint them in the short run, building up for a big disappointment in the long run.

]]> By: Iohannes http://alephblog.com/2009/03/11/greenspan-the-excellent-obfuscator/comment-page-1/#comment-21149 Iohannes Fri, 13 Mar 2009 03:38:05 +0000 http://alephblog.com/?p=1503#comment-21149 I was struck by this comment: <i>All things considered, I personally prefer Milton Friedman's performance appraisal of the Federal Reserve. In evaluating the period of 1987 to 2005, he wrote on this page in early 2006: "There is no other period of comparable length in which the Federal Reserve System has performed so well. It is more than a difference of degree; it approaches a difference of kind."</i> Surely he could have had a surrogate say that for him. To remark that, all things considered, you "personally prefer" the more favorable assessment of your legacy is to invite the charge of being personally motivated. I was struck by this comment:

All things considered, I personally prefer Milton Friedman’s performance appraisal of the Federal Reserve. In evaluating the period of 1987 to 2005, he wrote on this page in early 2006: “There is no other period of comparable length in which the Federal Reserve System has performed so well. It is more than a difference of degree; it approaches a difference of kind.”

Surely he could have had a surrogate say that for him. To remark that, all things considered, you “personally prefer” the more favorable assessment of your legacy is to invite the charge of being personally motivated.

]]> By: AntiRL http://alephblog.com/2009/03/11/greenspan-the-excellent-obfuscator/comment-page-1/#comment-21142 AntiRL Wed, 11 Mar 2009 23:04:34 +0000 http://alephblog.com/?p=1503#comment-21142 It is pretty sad and pathetic that to this day, he still thinks he didn't play the main central role in the collapse of this economy. It's like the executive chef at the restaurant not owning up to the horrible food that is prepared and served. Are you thatthat disillusional, Mr ex-Fed Chairman??? There is nothing wrong with owning up to one's mistakes, hopefully this coward will repent for the sins he committed before he dies. It is pretty sad and pathetic that to this day, he still thinks he didn’t play the main central role in the collapse of this economy. It’s like the executive chef at the restaurant not owning up to the horrible food that is prepared and served. Are you thatthat disillusional, Mr ex-Fed Chairman??? There is nothing wrong with owning up to one’s mistakes, hopefully this coward will repent for the sins he committed before he dies.

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