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Federal Reserve Faces New Limits on Ability to Halt Economic Slide
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The U.S. Federal Reserve Board, for all its power, faces tough new limits on its ability to keep the economy out of a recession. . . On Wednesday, the central bank, led by Ben Bernanke, found itself facing signs of a problem the United States has not seen in decades: stagflation, the mix of slumping economic growth, sharp spikes in prices for oil and food and a rising pace of overall inflation. (International Herald Tribune [1], Thursday)
Or maybe they're the same limits the Fed has always faced: central planning doesn't work.
FEE Timely Classic
The Impossible Task of the Fed [2] by Ernest G. Ross
Article printed from Foundation for Economic Education: http://www.fee.org
URL to article: http://www.fee.org/articles/in-brief/federal-reserve-faces-new-limits-on-ability-to-halt-economic-slide/
URLs in this post:
[1] International Herald Tribune: http://www.iht.com/articles/2008/02/21/business/usecon.php
[2] The Impossible Task of the Fed: http://www.fee.org/publications/the-freeman/article.asp?aid=239
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