Magazine November 15, 2010, Issue

Hard Money

(Roman Genn)
In trying to prevent inflation and deflation, Ben Bernanke treads a perilous path

The U.S. economy is at risk of falling into either an inflationary or a deflationary spiral, which is a consequence of the Federal Reserve’s having been either too loose or too tight. The only point of consensus among economists and financial journalists seems to be that Fed policy is dangerously wrong.

Federal Reserve chairman Ben Bernanke has been on both sides of the debate within the last few months. In late August he said that “falling into deflation is not a significant risk for the United States at this time.” In mid-October he said that “the risk of deflation is higher

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Ramesh Ponnuru is a senior editor for National Review, a columnist for Bloomberg Opinion, a visiting fellow at the American Enterprise Institute, and a senior fellow at the National Review Institute.

In This Issue

Articles

Features

Politics & Policy

Red Scare

During the 2008 campaign, Barack Obama’s most loyal and affectionate constituency was one that cannot legally vote in U.S. elections: foreigners. His campaign and subsequent election were celebrated in European, ...

Books, Arts & Manners

Politics & Policy

Northern Light

In modern American liberal-arts colleges, the Scottish Enlightenment tends to get short shrift. Except in specialized courses focused on the intellectual history of the 18th century at the few institutions ...
The Straggler

Sad, Bad, Mad

Scowling out at me from my New York Post is Steven Hayes, recently convicted of an exceptionally vile crime in my neighbor state of Connecticut. With another man, not yet ...
Politics & Policy

The Obama Vision

The charge by some conservatives that President Obama was and indeed still is a socialist has been met with disbelief or brushed aside as irrelevant by our liberal elites, most ...

Sections

The Week

The Week

Vice President Biden said, twice, that conservatives have spent $200 billion on political ads. He meant $200 million. Explains a lot about the last two years

Recommended

The Latest

The Wuhan Lab Cover-Up

The Wuhan Lab Cover-Up

It's now certain that the U.S. government misled the public about the kind of research that the U.S. taxpayers were indirectly funding in China.