The Perfect Solution of All Economics


Recently, the central bankers of the Fed, IMF, and the European Central Bank took their talents to Jackson Hole, WY to try and address the world’s current economic climate.  The result:  blame it on the governments’.  Can you blame them?  Each European country is trying to outfail the other and both the Republicans and Democrats are looking for their ownperfect solution to solve all the country’s money problems by reinforcing their already staunchly held beliefs.  Now where have I heard that before?  Something about freshwater and saltwater…

In Krugman’s bashing of the economists’ he mentions that Ben Bernanke believed that all we needed was a smarter Fed to avoid the Great Depression.  I think the now current Fed chairman is realizing that sound fiscal policy probably would be helpful as well.  With interest rates as low as they’ve ever been, it’s pretty clear that only adjusting monetary policy is not enough.  I do find it interesting that the Fed is getting criticized now by politicians for interfering, when many bankers feel it is not doing enough.

I promise I’m not trying to get into a political debate here, but lately it’s felt that any current conversation about economics is just another political discussion.  Raise taxes! Eliminate government spending! Where did all the jobs go?  What do we do about entitlements and how does the Fed fit into all of this?  It’s been a non-stop media parade and with the next presidential campaign about to hit primary season it’s only going to get worse. People need to realize there isn’t going to be a perfect solution.

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