Challenging Austrian, Keynesian, and Monetarist Theories of Fed

John Tamny, Political Economy Editor of Forbes, has written a controversial new book entitled ‘Who Needs the Fed?'. This is not your standard libertarian howl of outrage against American's central bank: it's more of a yawn of indifference to it. Tamny argues that the Fed is neither the savior which Keynesians make it out to be, nor the devil which some supply-siders and Austrian economists have sometimes claimed. It is, instead, a watcher, a bystander to the important developments in the American economy. For Tamny, the Fed doesn't matter very much, and the few ways and times in which it does matter, it is of harm.