Bernanke has an economic stimulus exit strategy that should, theoretically, limit inflation.

With the Fed rate effectively at 0%, direct interest rate intervention is not practical. So the Federal Reserve has turned to quantitative easing, buying mortgage-backed securities and agency debt.

I love Terry Pratchett. He is one of my favorite authors, due to mainly to his witty brilliance. As I have been pondering this current economic recession of ours, I decided to re-read his 2007 tale of monetary policy: Making Money.
And I found some rather lovely gems on the nature of money and banking. Here are a few of my favorites:
Conversation between Mr. Bent and Moist von Lipwig
(Mr. Bent) “I would prefer to say that it is a tacit understanding that we will honor our promise to exchange it for a dollar’s worth of gold, provided we are not, in …read more