The Monetary Policy Debate

"On one side are people like Ben S. Bernanke, the Fed chairman, who defend both what the Fed has done and what it hasn’t done. On the other side are the so-called inflation hawks, who say the Fed has been far too aggressive. Rick Perry, the Texas governor and arguably the Republican presidential front-runner, offered a particularly blunt version of this criticism when he recently accused Mr. Bernanke of flirting with treason."

Anyone passage find this disingenuous? Surely there are free-market economists who don't believe in the Fed "doing more". It seems like that chose Perry to discredit that position.

"I don't believe in AD, but if AD is true, then the Fed can do something about it."

Arnold, I think this deserves more thought. If AD isn't "true" and the Fed tried to create it anyway I believe we run the risk of large-scale social unrest and loss of reserve currency status. This is not simply some economic experiment - it is a full bet on the faith in the USD and in our current way of macroeconomic thinking. Investors already show signs of wanting to flee fiat currencies (as evidenced by gold) - do we really want to push capital further down that path?

"that chose" should be "they chose".

I'm sure you have before, but can you elaborate on your dove position?