{"id":24281,"date":"2017-06-28T16:31:55","date_gmt":"2017-06-28T21:31:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24281"},"modified":"2017-06-28T16:31:55","modified_gmt":"2017-06-28T21:31:55","slug":"there-is-no-excuse-for-janet-yellens-complacency","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24281","title":{"rendered":"There Is No Excuse For Janet Yellen’s Complacency"},"content":{"rendered":"
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There Is No Excuse For Janet Yellen’s Complacency<\/a><\/h3>\n

Janet Yellen has been reported by Reuters<\/a> as saying in London<\/a> yesterday that \u201cshe does not believe that there will be a run on the banking system at least as long as she lives\u201d:<\/p>\n

“Would I say there will never, ever be another financial crisis? You know probably that would be going too far but I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will be,” Yellen said at an event in London. \u201cFed\u2019s Yellen: Not another financial crisis in \u2018our lifetimes\u2019<\/a>\u201d<\/p><\/blockquote>\n

The only word I can use to describe this belief is \u201cdelusional.\u201d<\/p>\n

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NEW YORK, NY – JUNE 14: Traders work as a television monitor displays Federal Reserve Chair Janet Yellen announcing the Fed’s decision to raise interest rates on the floor of the New York Stock Exchange (NYSE) June 14, 2017 in New York City. The Federal Reserved raised interest rates today .25 percent for a new target range of 1 percent to 1.25 percent. (Photo by Drew Angerer\/Getty Images)<\/p>\n<\/div>\n<\/div>\n<\/div>\n

The only way in which her belief could be justified would be in financial crises were truly random events, caused by something outside the economy\u2014or just by a very bad throw of the economic dice.<\/p>\n

This is indeed the perspective of mainstream \u201cNeoclassical\u201d economic theory, in which Yellen was trained, and because of which she was deemed eligible\u2014and indeed eminently suitable\u2014to Chair the Federal Reserve.<\/p>\n

This is the theory that led the OECD to proclaim, two months before the crisis began in August 2007, that \u201cthe current economic situation is in many ways better than what we have experienced in years\u201d, and that they expected that \u201csustained growth in OECD economies would be underpinned by strong job creation and falling unemployment.\u201d (OECD, June 2007, \u201cAchieving Further Re-balancing<\/a>\u201d).<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

There Is No Excuse For Janet Yellen’s Complacency Janet Yellen has been reported by Reuters as saying in London yesterday that \u201cshe does not believe that there will be a run on the banking system at least as long as she lives\u201d: “Would I say there will never, ever be another financial crisis? You know […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6802,7921,451,683,750],"class_list":["post-24281","post","type-post","status-publish","format-standard","hentry","category-economics","tag-complacency","tag-forbes","tag-janet-yellen","tag-reuters","tag-steve-keen"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24281"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24281\/revisions"}],"predecessor-version":[{"id":24282,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24281\/revisions\/24282"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}