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RE: lol, this will be good (nm)
Posted on: July 8, 2021 at 21:05:01 CT
raskolnikov MU
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A few reviews - (I read it in grad school, more than 30 yrs ago, so . . .
One of the most important books a person interested in investing or economics can read. It explains the history, vital importance and politics of the Federal Reserve bank. It gives a new insight into our national and the world economy that I would not have caught before. Remarkable research explained in simple lay person's English and made very interesting (of what many would consider a dry subject if written by someone other than William Greider.
Amazing book! I'm still in the process of reading this book but I've learned more about the economy in the first 150 pages than in 2 semesters of Econ 101 and Econ 102. Strongly recommend this book to everyone.
"Secrets of the Temple" is an interesting book written by a very good writer, William Greider. Although it was published more than 20 years ago, he makes points that are somewhat relevant today. The book is largely about the Federal Reserve Board (or "FED") under chairman Paul Volcker from 1979 to 1987 although there is a good deal of history on the FED prior to Volcker's appointment as chairman by President Jimmy Carter.
Greider is a classic populist, in the sense he reveres the populists of the late 19th century, who fashioned themselves as champions of the (largely agricultural) producers of the era against the creditor classes, the moneyed interests. Much of this analysis of the issues in this book (and others he has written) is grounded that same populist class cleavage. Although populism often appeals to the baser instincts of the masses, Greider tries to give it an intellectual veneer, but in the end, the reader is struck with the same contradictions. Greider bucks conventional wisdom by suggesting the inflation that gripped the 1970s was a net plus, since he saw it as an economic leveler, much as the classic populists of the 19th century saw it. As inflation pushes up the nominal incomes of borrowers it lowers the real value of their fixed debt obligations. There are some serious problems with this view, which Greider doesn't bother to address. First, the benefit of an outburst of inflation accrues to the last set of borrowers before inflation begins, since interest rates shoot up and future borrowers have to seek credit with potential creditors based on expectations of higher inflation. The second, perhaps bigger, problem is once inflation is unleashed it is hard to control. Inflationary expectations can accumulate, if price increases of 10 percent a year are acceptable, what about 20 percent? Or 50 percent? At some point, inflation can cause real economic upheaval and I'm unaware of any society that progressed during a period of hyperinflation.
Greider also gives the FED more credit than it probably deserves. He suggests every post-WWII recession was caused by the FED employing tight monetary policies (high interest rates or unwillingness to lend to banks). The business cycle existed before the Federal Reserve and, at best, the FED has an impact and probably did deliberately trigger a recession in early 1980, however, many other factors come into play in the real world. The recessions of early 1990s and 2001 were hardly triggered by the FED and the most recent recession that began in late 2007 wasn't the result of tight monetary policy but rather, if anything, the opposite, excessively loose monetary policy in middle of the decade.
For the other side of the story, read Robert Samuelson's The Great Inflation and Its Aftermath: The Past and Future of American Affluence
One of the most important books a person interested in investing or economics can read. It explains the history, vital importance and politics of the Federal Reserve bank. It gives a new insight into our national and the world economy that I would not have caught before. Remarkable research explained in simple lay person's English and made very interesting (of what many would consider a dry subject if written by someone other than William Greider.
Amazing book! I'm still in the process of reading this book but I've learned more about the economy in the first 150 pages than in 2 semesters of Econ 101 and Econ 102. Strongly recommend this book to everyone.
"Secrets of the Temple" is an interesting book written by a very good writer, William Greider. Although it was published more than 20 years ago, he makes points that are somewhat relevant today. The book is largely about the Federal Reserve Board (or "FED") under chairman Paul Volcker from 1979 to 1987 although there is a good deal of history on the FED prior to Volcker's appointment as chairman by President Jimmy Carter.
Greider is a classic populist, in the sense he reveres the populists of the late 19th century, who fashioned themselves as champions of the (largely agricultural) producers of the era against the creditor classes, the moneyed interests. Much of this analysis of the issues in this book (and others he has written) is grounded that same populist class cleavage. Although populism often appeals to the baser instincts of the masses, Greider tries to give it an intellectual veneer, but in the end, the reader is struck with the same contradictions. Greider bucks conventional wisdom by suggesting the inflation that gripped the 1970s was a net plus, since he saw it as an economic leveler, much as the classic populists of the 19th century saw it. As inflation pushes up the nominal incomes of borrowers it lowers the real value of their fixed debt obligations. There are some serious problems with this view, which Greider doesn't bother to address. First, the benefit of an outburst of inflation accrues to the last set of borrowers before inflation begins, since interest rates shoot up and future borrowers have to seek credit with potential creditors based on expectations of higher inflation. The second, perhaps bigger, problem is once inflation is unleashed it is hard to control. Inflationary expectations can accumulate, if price increases of 10 percent a year are acceptable, what about 20 percent? Or 50 percent? At some point, inflation can cause real economic upheaval and I'm unaware of any society that progressed during a period of hyperinflation.
Greider also gives the FED more credit than it probably deserves. He suggests every post-WWII recession was caused by the FED employing tight monetary policies (high interest rates or unwillingness to lend to banks). The business cycle existed before the Federal Reserve and, at best, the FED has an impact and probably did deliberately trigger a recession in early 1980, however, many other factors come into play in the real world. The recessions of early 1990s and 2001 were hardly triggered by the FED and the most recent recession that began in late 2007 wasn't the result of tight monetary policy but rather, if anything, the opposite, excessively loose monetary policy in middle of the decade.
For the other side of the story, read Robert Samuelson's The Great Inflation and Its Aftermath: The Past and Future of American Affluence
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RE: lol, this will be good (nm) - raskolnikov MU - 7/8 21:05:01