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Is Janet Yellen the wrong choice for The Fed?

The new chair of the Federal Reserve is rumoured to be an advocate of the easy money policies which many believe helped spark the recent financial crisis

By James Kwak  

©PA Images

Once upon a time, there was a man named Greenspan. In 1987, when the stock market wobbled, he promised Wall Street all the liquidity it needed and followed that up with an interest rate cut. In the 1990s, he kept interest rates low during a long economic boom, which allowed the technology bubble to inflate to dizzying heights. As a direct response to the September 11 terrorist attacks in 2001, he again lowered rates and kept them low as house prices surged.

There’s a term for this: easy…

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