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Über dieses Buch

The book reveals how the Global Credit Bubble and Bust of 2003-10 stemmed from giant monetary disequilibrium created by the Federal Reserve. Almost continually that institution has pursued flawed monetary practice and principle which has mutated into Bernanke-ism. The book dissects this and shows how it threatens the return of economic prosperity.

Inhaltsverzeichnis

Frontmatter

1. A 100-Year Monetary Disorder

Abstract
Curse is a strong word to use about the global influence of a 100-year institution headed throughout by officials dedicated to public service in the world’s greatest economy and greatest democracy. Yet, as the Scottish philosopher and economist John Stuart Mill wrote more than 200 years ago, the ‘machine of money’ has unique potential to cause trouble. Most of the time, Mill tells us, the machine called money is unimportant, but when it gets out of control it becomes the monkey wrench in all the other machinery of the economy (a line which Milton Friedman famously quoted on the eve of the first monetarist revolution – see Friedman, 2006). The machine of money in the US came under the command of the Federal Reserve soon after the outbreak of the First World War. The ensuing damage from a series of epic US monetary disorders has been of a global intensity that surely Mill himself could never have imagined. The US monetary machine when out of control becomes the monkey wrench in much of the other machinery of the global economy in countries far beyond the shores of the US, even on occasion unleashing forces in the geo-political landscape which determine war or peace.
Brendan Brown

2. Phobia of Deflation Menaces Prosperity

Abstract
It is hard to believe that once upon a time – in fact as recently as the 1920s and 30s – periods of price level rises were just as frequent as those of price level falls. Some of these periods were short – others were long. Sometimes the cumulative price fall would be large – other times small. Over the very long run (meaning several decades) the price level was stable. (If the price level were measured as of today to take account of continuing quality improvements – for example a constant quoted price for a computer despite an increase in computing power – then there would have been some long-run downward drift). That was the situation for the group of countries which were on the gold standard: indeed it was only for around 40 years before the First World War that the gold standard could be described Phobia of Deflation Menaces Prosperity
Brendan Brown

3. Manifesto for a Second Monetarist Revolution

Abstract
The long playing drama of US monetary instability through its various distinct acts since 1914 has had only few intermissions, all of brief duration. The actors and the plot change over time. Some acts are epic and global in scale. Others are monotonous and largely uneventful. There is no script but perpetual improvisation. And from early on (though not right at the beginning) a wide array of critics have been passing comment, some from the vantage point of live spectators, others as researchers of the historical record. Some of the critics have identified themselves strongly with particular schools of monetary economics. They take issue with the false doctrines or lack of doctrine on the part of Federal Reserve policy-makers responsible for the given (actual or historic) monetary turbulence.
Brendan Brown

4. Currency War Machine

Abstract
If the second monetarist revolution were to occur in the US, then the world would find itself at the dawn of a new age of dollar hegemony. No longer would international investors have to fear that their dollar assets could suddenly erode in value due to the Federal Reserve taking big gambles with monetary stability to accelerate recovery from recession. These gambles have often been an essential element in a currency war strategy forged in a sometimes decentralized fashion within the US government (including the Federal Reserve as a semi-independent agency). With such war danger no longer present, much of the diversification of recent decades, as investors globally have sought safety by introducing non-dollar currencies into their portfolios, would go into reverse.
Brendan Brown

5. Revolt against Bernanke-ism

Abstract
Bernanke-ism transcends the person of top Federal Reserve official Ben Bernanke. The set of monetary principles which Ben Bernanke has laid down, whether as a Princeton professor or central banker, is a partial clue to the meaning of Bernanke-ism but not an open window into its essence. That includes, in addition to a particular intellectual viewpoint or theoretical construct, the whole practice of monetary policy-making and how that fits into the wider political system. Many elements of Bernanke-ism were alive well before Professor Bernanke entered the Federal Reserve Board in 2002 and many are found in monetary policymaking and monetary frameworks outside the US. The whole is often more than the sum of the parts and that is the case with Bernanke-ism. Ten elements make up Bernanke-ism.
Brendan Brown

Backmatter

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