{"id":650,"date":"2011-02-03T18:00:09","date_gmt":"2011-02-03T23:00:09","guid":{"rendered":"http:\/\/marcfbellemare.com\/wordpress\/?p=650"},"modified":"2011-02-03T18:00:37","modified_gmt":"2011-02-03T23:00:37","slug":"us-monetary-policy-and-rising-food-prices","status":"publish","type":"post","link":"https:\/\/marcfbellemare.com\/wordpress\/650","title":{"rendered":"US Monetary Policy and Rising Food Prices"},"content":{"rendered":"

According to this Wall Street Journal article<\/a>, the Chairman of the Federal Reserve, Ben Bernanke, says US monetary policy should not be blamed for rising food prices:<\/p>\n

“Bernanke said constraints on supply — such as bad weather — along with increased demand are to blame for pushing up prices for food commodities.<\/p>\n

Strong growth in emerging economies is moving millions of people from poverty to the middle class, changing their eating habits \u2014 \u201cmore beef and less grains and so on,\u201d Bernanke said.<\/p>\n

The Fed\u2019s policies are aimed at growing the domestic economy and \u201cto address stability in the United States,\u201d he said. For some foreign countries facing high inflation, \u201ctheir policies have not been such to keep growth and capacity in balance,\u201d he said.<\/p>\n

\u201cI think it\u2019s entirely unfair to attribute excess demand in emerging markets to U.S. monetary policy,\u201d Bernanke said. Those nations can use their own monetary policy and adjust exchange rates to deal with their inflation problems, he said.<\/p>\n

I tend to agree wholeheartedly with Bernanke, as many developing countries have a bad track record when it comes to managing inflation. That bad track record is often the result of bad monetary policy.<\/p>\n

By the way, what the Chairman of the Federal Reserve describes — the fact that consumers in developing countries substitute protein for carbohydrates as income increases — is generally known as Bennett’s Law<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to this Wall Street Journal article, the Chairman of the Federal Reserve, Ben Bernanke, says US monetary policy should not be blamed for rising…<\/p>\n

Continue readingUS Monetary Policy and Rising Food Prices<\/span><\/a><\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[18,26,34,14,12],"tags":[],"class_list":["post-650","post","type-post","status-publish","format-standard","hentry","category-agriculture","category-food","category-macro","category-micro","category-policy","entry"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p1gPg8-au","_links":{"self":[{"href":"https:\/\/marcfbellemare.com\/wordpress\/wp-json\/wp\/v2\/posts\/650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marcfbellemare.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marcfbellemare.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marcfbellemare.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marcfbellemare.com\/wordpress\/wp-json\/wp\/v2\/comments?post=650"}],"version-history":[{"count":6,"href":"https:\/\/marcfbellemare.com\/wordpress\/wp-json\/wp\/v2\/posts\/650\/revisions"}],"predecessor-version":[{"id":656,"href":"https:\/\/marcfbellemare.com\/wordpress\/wp-json\/wp\/v2\/posts\/650\/revisions\/656"}],"wp:attachment":[{"href":"https:\/\/marcfbellemare.com\/wordpress\/wp-json\/wp\/v2\/media?parent=650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marcfbellemare.com\/wordpress\/wp-json\/wp\/v2\/categories?post=650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marcfbellemare.com\/wordpress\/wp-json\/wp\/v2\/tags?post=650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}