Here’s Arnold Kling:
4. Some prominent Republican politicians oppose monetary expansion. I think they are wrong, but I assume that their motives are sincere.
Unlike Arnold Kling, I don’t assume sincere motives for politicians. Here’s why:
1. Perry said he opposed Fed monetary expansion between now and the election. Why before the election? Could it help Obama?
2. A few months ago Romney was praising Bernanke for doing a good job, despite QE2, etc. That was when he was the GOP frontrunner. But now he’s fallen behind Fed-bashing Perry. What’s Romney’s new position:
GOP candidates Newt Gingrich and Mitt Romney made it clear this week they would not hesitate to shoot down “Helicopter Ben”Bernanke for his willingness to engage in what they see as overly accommodative monetary policy.
In other words, if they somehow manage to become president, the head of America’s central bank gets an immediate pink slip, joining millions of others on the unemployment line.
Coincidence? I report, you decide.
3. After three years of headline CPI inflation averaging one percent, GOP House and Senate leaders send a letter to Bernanke demanding he not ease monetary policy. I don’t recall similar letters when the GOP held the presidency and was concerned about losing elections because of the bad economy, and inflation was much higher. Do you?
Some bloggers may err by using intemperate language like “treasonous.” But let’s not overreact by assuming politicians have sincere motives.
PS. Matt O’Brien of The New Republic has a good article on the politics of Fed bashing.