To the memory of John Youngdahl Valued friend and colleague Federal Reserve chairman Ben Bernanke has declared war on deflation by articulating an inflation target for the Fed and proposing additional quantitative easing, or creation of money. Opponents of Bernanke's bold step--including members of both the Federal Open Market Committee and the Wall Street Journal editorial board--are pressing for tighter monetary policy, claiming that rising gold prices, a weaker dollar, and rising inflation expectations are danger signals that the Fed should heed instead of pursuing further quantitative easing.
