On the other hand, critics suggest that Blinder’s remarks were politically naive. They think the Fed’s conservative reputation helps keep inflation low, and that policymakers should be careful not to endanger this reputation. †
*Bryon Higgins, “Reducing Unemployment: Current Issues and Policy Options—a Summary of the Bank’s 1994 Symposium,” Federal Reserve Bank of Kansas City Economic Review, Fourth Quarter 1994, pp. 45–48.† For more on this episode, see Bob Woodward, Maestro: Greenspan’s Fed and the American Boom, Simon and Schuster, 2000; and Alan Blinder, “Central Banking in a Democracy,” Federal Re -serve Bank of Richmond Review, 82 (1996): 1–14. The New York Timesarticle is Keith Bradsher, “Fed Official Disapproves of Rate Policy,” August 28, 1994, p. A6. The Samuelson column is “Economic Amnesia: Alan Blinder Forgets the Dangers of Inflation,” Newsweek, September 12, 1994 (www.newsweek.com/1994)
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