My apologies, I reckon I was responding right past your point. When I see ‘fiat money’, it raises my Ron Paul red flag. Gold has just an arbitrary value as floating currencies. My point is monetary intervention is not a Keynsian. Milton Friedman advocated a central bank policy aimed at keeping the supply and demand for money at equilibrium. Sorry to be a stickler for details.
Did the Fed blink and chopped rates too fast a few weeks ago when global equity markets dropped 5%? That’s certainly arguable especially when the Fed was going to meet a week later anyway. I would have rather waited to see if the Euros were going to make a move. They had a shock to their economies that day as we did. Having said all that, I find monetarism far more reliable and flexible than tying our money to some mineral you can dig out of the ground.
As far as the stimulus package, I’m agreement. The only jobs it’s meant to protect is congress’.
