When the Federal Reserve decided to loosen monetary policy in September 2007, not many people criticized it. The vote was unanimous. Few congressmen said anything about the move. Three years later, inflation was lower and unemployment higher than in 2007. But the Fed’s move to loosen money in mid-2010 aroused fierce opposition from conservative politicians, economists, and journalists. Sarah Palin complained that “printing money out of thin air” would “erode the value of our incomes and our savings.”
Republicans and conservatives have started to take a much harder line against inflation and a Federal Reserve they consider too inclined toward monetary expansion. In the early 1980s, supply-siders would sometimes criticize Paul Volcker’s Fed for fighting inflation too vigorously. Few on the right say anything similar today.
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