well, the power of the Fed -- and the bond market -- arose only with the fall of the Bretton Woods fixed exchange-rate system. Before that, the Fed was largely passive. Fiscal policy ruled the roost, though often for ill rather than for good.
Michael Perelman wrote: > Woodward paints the scene that followed: > > At the president-elect's end of the table, Clinton's face turned red with > anger and > disbelief. 'You mean to tell me that the success of the program and my > reelection > hinges on the Federal Reserve and a bunch of fucking bond traders?' he > responded in > a half-whisper. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
