This from the well known leftist (lol) Bernanke. And Morrison, here? Was he Labor?
It is true that Bernanke shepherded through a major program of quantitative easing and money-supply expansion. He oversaw a huge injection of reserves into the banking system; by October 2009 banking reserves had risen to $2.1 trillion from $870 billion before the crisis. Still, those policies did not spur massive inflation.
Yes, under Bernanke the Fed did create money and use it to purchase assets from banks — longer-term government bonds, commercial paper, mortgage securities. That increased the supply of money. But the Fed also oversaw an increase in the demand for money — bank reserves in particular — by paying interest on reserves held at the Fed. Furthermore, there were other deflationary pressures at the time, due to collapses in credit and mortgage markets.
There is a theme here. Right Wing Governments go for Boom and then when the inevitable Bust comes along, they are out of power and the incoming Government, nominally left, has to pick up the pieces.
See a theme here? We’re here again - 10 years of unadulterated shitpot government and now ALP has to clean up.
The Government has to take a lead on Monetary Policy. Wall St doesn’t cut it.
Menzies got it - but post the RayGun era? Paltry Government at best. Both sides - but mainly Liberal. We’re following America to a financial graveyard.
