tag:blogger.com,1999:blog-31670799.post116370620722800583..comments2023-11-02T09:44:15.693-04:00Comments on The Center for College Affordability and Productivity: Milton the MagnificantCenter for College Affordability and Productivityhttp://www.blogger.com/profile/18041956958538598371noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-31670799.post-1163717202844870562006-11-16T17:46:00.000-05:002006-11-16T17:46:00.000-05:00"(Although the Fed does deserve credit for buying ..."(Although the Fed does deserve credit for buying & selling treasuries in the open market to deal with money supply.)"<BR/><BR/><BR/>ADDENDUM: My comments on the Fed should not be construed as approval of, or in aggreement with the Fed's policy of trying to line up the effective federal funds rate with their "targeted" interest rate by manipulating the money supply in open market operations (as I cited above). <BR/><BR/>This is a backward way of trying to control inflation by looking for an ideal interest rate and imposing it by affecting the money supply. No where in the money supply equation are interest rates even found.RWWhttps://www.blogger.com/profile/16345147132602206121noreply@blogger.comtag:blogger.com,1999:blog-31670799.post-1163717097734025552006-11-16T17:44:00.000-05:002006-11-16T17:44:00.000-05:00This comment has been removed by a blog administrator.RWWhttps://www.blogger.com/profile/16345147132602206121noreply@blogger.comtag:blogger.com,1999:blog-31670799.post-1163712318469845042006-11-16T16:25:00.000-05:002006-11-16T16:25:00.000-05:00Excerpt form Financial Times:http://www.ft.com/cms...Excerpt form Financial Times:<BR/>http://www.ft.com/cms/s/cb74eef8-7599-11db-aea1-0000779e2340.html<BR/><BR/>"Friedman's direct influence on Margaret Thatcher was much less than often supposed. Although they got on together at a private dinner before the 1979 election, the two did not know each other well and Friedman is only mentioned en passant in the former prime minister's memoirs. Her own inspiration, as she relates, came from Hayek.<BR/><BR/>Nevertheless, Friedman had an obvious, if indirect, effect on many of her advisers and ministers. The Medium Term Financial Strategy of the 1980s, with its target of a gradual reduction in the growth of the money supply and the abandonment of fine tuning, obviously stemmed at one remove or another from the Chicago economist. <BR/><BR/>But the master himself disowned the MTFS because the Bank of England continued to regulate the money supply through interest rates rather than via the monetary base. Moreover, he did not believe that reducing the Budget deficit would have much effect on interest rates or in any other way deserved the prominence given to it in the MTFS."<BR/><BR/>Cowboy Note:<BR/>Does this sound familiar? As in "Wall Street", the "Central Bank", et al. being too damned enamored with the practice of "tweaking" interest rates? (Although the Fed does deserve credit for buying & selling treasuries in the open market to deal with money supply.) Surely the concept of supply & demand has not been forgotten.RWWhttps://www.blogger.com/profile/16345147132602206121noreply@blogger.com