FED: Janet Yellen: The Fed is a Monetary Superpower

[bobbyw24]

By David Beckworth|Feb 9, 2010, 1:32 AM|Author's Website

Federal Reserve Bank of San Francisco President Janet Yellen makes the case for the Fed as a monetary superpower, at least in Asia:

For all practical purposes, Hong Kong delegated the determination of its monetary policy to the Federal Reserve through its unilateral decision in 1983 to peg the Hong Kong dollar to the U.S. dollar in an arrangement known as a currency board. As the economist Robert Mundell showed, this delegation arises because it is impossible for any country to simultaneously have a fixed exchange rate, completely open capital markets, and an independent monetary policy. One of these must go. In Hong Kong, the choice was to forgo an independent monetary policy.

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As in Hong Kong, Chinese officials are concerned about unwanted stimulus from excessively expansionary policies of the Fed and in other developed economies. Like Hong Kong, China pegs its currency to the U.S. dollar, but the peg is far less rigid.

http://wallstreetpit.com/16326-janet...ary-superpower

[HOLLYWOOD]

Janet Yellen is a another Keynesian Kook POS out of the UC system of Liberals crackheads from Berkeley.

Another Cristina Romer type... lockstep economic propagandist with useless monetary models.