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I agree. Although Aaron does offer support for the idea that Bernanke is choosing unemployment over inflation [1], he doesn't support the idea that the bankers

I agree. Although Aaron does offer support for the idea that Bernanke is choosing unemployment over inflation [1], he doesn't support the idea that the bankers are motivated by selfishness. (For example, they may be motivated by the fact that inflation would make the dollar an unattractive investment vehicle to other countries.) [1] Via quoting from the Economist: “Mr Bernanke does not want to risk a de-anchoring of inflation expectations. He is willing to accept 10% or greater unemployment and the resulting economic and political fall-out in order to avoid that risk.”

scotty79 17y ago
> ... he doesn't support the idea that the bankers are motivated by selfishness. ... Isn't that assumption always taken by default when considering nearly all market actions? That actors in the market are primarily motivated by selfish goals?
- drunkpotato 17y ago
  Unless that assumption would lay the blame for a catastrophe on wealthy people and require changes that would make them less wealthy, in which case we cannot take selfishness for granted and have to assume their motivations are altruistic (if misguided). You really need to be up-to-date on modern market ideology.
  - yummyfajitas 17y ago
    Modern market ideology does tend to assume people controlling the government and various agencies (for instance, Bernake) are motivated by selfishness. It also assumes that the home-borrowers, politicians, realtors and bankers who created the housing bubble were motivated by selfishness, as were the hedge fund managers and bankers who helped pop the bubble.
    - eru 17y ago
      Those market actors also only have limited rationality (and not perfect foresight), and skewed incentives (-> principal agent problems). That needn't hinder one from constructing a conspiracy theory, though.
      - scotty79 17y ago
        I don't think that this is a conspiracy theory. Just observation (fairly obvious, although I am not sure if right in that case) that selfishness can sometimes lead to actions that harm economy and the people. Greed is (not always) good.
        eru 17y ago
        I agree. Though I would be cautious stating that someone wanted a recession _and_ effected [sic] it.
- Nwallins 17y ago
  > Isn't that assumption always taken by default when considering nearly all market actions? Yes, and bankers are generally motivated by self-interest when undertaking market actions. However, we are not talking about a market action. The question is what motivates Ben Bernanke's decisions as the head of the Fed? Is he a selfish kleptocrat trying to enrich himself and his buddies, or is he providing prudent guidance to the country and economy as a whole? Personally, I disapprove of his role and distrust the Fed's entirely, so I cannot provide a reasonable answer here.
  - scotty79 17y ago
    > The question is what motivates Ben Bernanke's decisions as the head of the Fed? He is still Ben Bernanke, right? Does the hat he wears change him? Assumption that people undertaking government position will forget about what their life was all about up to that point seems far fetched.

scotty79 17y ago

> ... he doesn't support the idea that the bankers are motivated by selfishness. ... Isn't that assumption always taken by default when considering nearly all market actions? That actors in the market are primarily motivated by selfish goals?

drunkpotato 17y ago
Unless that assumption would lay the blame for a catastrophe on wealthy people and require changes that would make them less wealthy, in which case we cannot take selfishness for granted and have to assume their motivations are altruistic (if misguided). You really need to be up-to-date on modern market ideology.
- yummyfajitas 17y ago
  Modern market ideology does tend to assume people controlling the government and various agencies (for instance, Bernake) are motivated by selfishness. It also assumes that the home-borrowers, politicians, realtors and bankers who created the housing bubble were motivated by selfishness, as were the hedge fund managers and bankers who helped pop the bubble.
  - eru 17y ago
    Those market actors also only have limited rationality (and not perfect foresight), and skewed incentives (-> principal agent problems). That needn't hinder one from constructing a conspiracy theory, though.
    - scotty79 17y ago
      I don't think that this is a conspiracy theory. Just observation (fairly obvious, although I am not sure if right in that case) that selfishness can sometimes lead to actions that harm economy and the people. Greed is (not always) good.
      - eru 17y ago
        I agree. Though I would be cautious stating that someone wanted a recession _and_ effected [sic] it.
Nwallins 17y ago
> Isn't that assumption always taken by default when considering nearly all market actions? Yes, and bankers are generally motivated by self-interest when undertaking market actions. However, we are not talking about a market action. The question is what motivates Ben Bernanke's decisions as the head of the Fed? Is he a selfish kleptocrat trying to enrich himself and his buddies, or is he providing prudent guidance to the country and economy as a whole? Personally, I disapprove of his role and distrust the Fed's entirely, so I cannot provide a reasonable answer here.
- scotty79 17y ago
  > The question is what motivates Ben Bernanke's decisions as the head of the Fed? He is still Ben Bernanke, right? Does the hat he wears change him? Assumption that people undertaking government position will forget about what their life was all about up to that point seems far fetched.