Great Recession: The Federal Reserve shouldn’t brag about its response. – By Simon Johnson – Slate Magazine

It is increasingly common to hear prominent American and European central bankers proclaim this verdict for themselves with respect to the crisis of 2008-10. Their view is that the various government actions to support the financial system helped to stabilize the situation. Indeed, what could be wrong when the Federal Reserve’s asset purchases may have actually made money (which is then turned over to the Treasury Department)?

To frame the issue in this way is, at best, to engage in delusion. At worst, it creates an image of arrogance that can only undermine the credibility on which central banks’ authority rests.

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Great Recession: The Federal Reserve shouldn’t brag about its response. – By Simon Johnson – Slate Magazine.

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