Should the Oracle Have a Moral Compass? Social Justice and Recent Federal Reserve Policy

摘要

Given his popular image as the "maestro" of monetary policy, it is unsurprising that Federal Reserve Chairman Alan Greenspan's retirement in January 2006 provided the occasion for scholars to assess the Fed's performance during his term of office. Political conservatives - led by Milton Friedman (2006) - who gave generally positive reviews despite complaining about Greenspan's disdain for monetary rules, cited declines in both inflation rates and their standard deviations, and the fact that increased price stability did not come at the expense of gross domestic product (GDP). On the other hand, progressives focused on how Greenspan's policies affected social justice. One critic, E. Ray Canterbery (2006), portrayed Greenspan as a libertarian ideologue whose actions benefited wealthy financial interests at the expense of average citizens. Moreover, Thomas Palley (2005) pointed out that Greenspan's policies aided in the creation of what he called "new business cycles," which are characterized by debt-fueled consumer spending, deindustrialization, chronic trade deficits, and preemptive strikes against inflation.