3 ms·
Actually, Dr. Summers does implicitly mention the Fed, when he says "Probably the two most important steps that public policy can take with respect to wealth i
by QuantumChaos 12y ago
Actually, Dr. Summers does implicitly mention the Fed, when he says
"Probably the two most important steps that public policy can take with respect to wealth inequality are the strengthening of financial regulation to more fully eliminate implicit and explicit subsidies to financial activity, and ..."
When he refers to implicit subsidies, I believe he is referring to some actions of the Fed in bailing out banks. Apart from direct bailouts, the monetary policy of the Fed was a bailout of a financial sector that was "too big to fail". So I don't think Dr. Summers is skirting around this issue.
I would further guess that the author would advocate a return to more conventional neo-Keynsian monetary policy, as opposed to the highly interventionist policies pre and post financial crisis. Which might still not satisfy your desire for "true market forces", depending on what you meant.