Home > Brad DeLong > The Constraint of Government Regulation

The Constraint of Government Regulation

As bad as the economy is right now and for all the harm caused by our government’s imperfect macroeconomic regulations and policies it is important to keep perspective of the extremity of some of the alternatives. Without direct memory of how our economy used to function it’s easy to understand the appeal of End-the-Fed types, hard libertarians, or the anti-globalism of paleo-conservatives and the far-Left.

Brad DeLong shares a remarkable graph illustrating an “Unmanaged Macroeconomy.”

20090810-phn8ba36ihb41sr98cxr8ht2u.png 613մ78 pixels

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Categories: Brad DeLong
  1. Bill
    December 15, 2010 at 6:14 pm

    “used to function” is perhaps the key phrase here. The Fed under Greenspan was largely responsible for much of our current economic downturn as it enabled “bubble economies” over the last 25 years.

    • December 15, 2010 at 7:30 pm

      True, and we shouldn’t absolve them of responsibility but we do need to keep in mind the severity of the boom and bust cycle before managers like Greenspan were tasked with keeping full employment.

  2. Jack
    December 16, 2010 at 5:56 pm

    I have to admit I’m still a fan of the Fed despite the renewed attack from hardliners. Economics is still in it’s infancy and greenspan himself was dumbfounded when the economy went south (The Keynesian Economists were not). Let’s remember that the crisis is worldwide and that no one has a larger housing bubble than the Chinese.

  3. zach
    December 21, 2010 at 6:04 pm

    dan,
    why do you have a picture of tucker carlson as your avatar?

    sincerely,
    zach

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