The political cheerleaders are applauding the “bold move” of Fed Chairman Ben Bernanke in buying a trillion or so of federal bonds. Supposedly, this is what we need to “get the economy going again.” (As if “the economy” were some cranky old machine that requires a team of federal repairmen to get it working right.)
Economics professor William Anderson here explains just what this entails — how many people have the slightest idea what the Fed does and how? — and why it will prove harmful in the long run.
