For a very quick answer to how Progressive economist should respond to
FED independence, look at Ch. 3 in the Dollars and Sense reader:
Real World Banking. It is very inexpensive, and they need the money, so
buy a copy. It is well worth the cost. It also includes the best short
summary of the S&L crisis that I know of.
For a much more detailed analysis of the effects of FED independence, see
the new book by Dymski, Epstein and Pollin, Transforming the U.S.
Financial System. M.E. Sharpe. Someone posted a review of this book
recently, but I did not keep it. If someone out there has a copy of the
review, you might want to repost it.
Just one example of the implications of FED independence: This week,
Clinton and the leaders of the industrialized world are gathing to addr
a "global crisis of unemployent," approaching the levels of the 1930's.
The FED's response? Raise interest rates to slow the economy and keep
inflation in check. Greenspan is thumbing his nose at this conference and
getting away with it. The conference is an exercise in political
handwaving. Nothing will come of it.
Doug Orr
[EMAIL PROTECTED]
