Comments: An exercise in interpretation

Perhaps the disconnect might rely on the Fed being unchecked, directly, by the populace. Granted the president appoints the Chairman, but this isn't exactly the same as a democratic check.

I'll admit there is an apparent discontinuity, however.

Posted by Daniel at February 24, 2008 07:53 PM

Financial markets are the monitor, not voters (for the most part, though of course there is voter dislike of inflation). This argument has been known for a long time, no?

Posted by Tyler Cowen at February 28, 2008 07:41 AM

Thanks, Tyler. That clears up who "we" are in the second quotation. And yes, with that substitution the argument is now familiar. I was thrown off because "we" suggested "we voters" in the context of "should one push the button to replace the Fed with a gold standard?". It didn't occur to me that "we" meant "we financial markets".

Posted by Lawrence H. White at February 28, 2008 10:10 AM