Monday, February 04, 2008
Reference: US stimulus package unlikely to help much, Bangkok Post, February 4, 2008
The article quotes Professor Finn Erling Kydland, identified as a Nobel laureate, to make the case that the monetary policy of the US Federal Reserve Bank is unlikely to resolve the US financial crisis (US stimulus package unlikely to help much, Bangkok Post, February 4, 2008). A complex financial problem created by rising oil prices and mortgage defaults is thus further obfuscated by throwing ad hominem into the mix. Arguments made for or against an economic policy must stand on their own merit instead of appealing to Nobel prizes. After all, the last financial crisis in America was brought on by the mis-management of a hedge fund called Long Term Capital Management. It was managed by Nobel laureates.