Sublime

Only Alan Blinder, once a Fed vice chairman and a former Princeton colleague of Bernanke’s, defended the Fed. Blinder told this tale:

“Only a crisis—actual or perceived—produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable.” After years o

What matters for business is not the general behavior of prices, but the price differentials between selling prices and costs (the “natural rate of interest”).

Harry Truman said “a recession [is] when your neighbor loses his job; it’s a depression when you lose yours.”