Monday, November 23, 2015
What Top Conservative Economists Predicted About QE Five Years Ago
The Manhattan Institute, which claims that it's policy positions are the right polices for the 21st Century, sent this open letter to Ben Bernanke which predicted that QE would debase the dollar and lead to inflation. The letter was signed by prominent economists who populate other conservative think tanks. Their predictions about the dollar and inflation could not have been more off target. However, these economists are still eagerly sought out by journalists who write down everything they say without regard to their complete misunderstanding about the consequences of QE. Brad DeLong argues that this tells us a lot about journalists and also a lot about prominent economists who seldom change their minds in response to contradictory evidence. Their ideology is consistent with the ideology of the think tanks in which they work so there is no need to pay much attention to data.