Contra David Merkel, Amity Schlaes says a choice can be made, and Bernanke’s worry should be inflation.
Update: David left me a comment, so I am going to include it, and my response:
I’m not saying regulators won’t be forced to make a choice, or what that choice might be. My opinion on what should be done is not that far away from that of Ms. Schlaes. I just think that the FOMC is in a pickle; no matter what they do, they will continue to face asset deflation, and price inflation for the next few years.
Thanks for citing me, though.
My response:
David,
Thanks for stopping by. Actually, I don’t doubt you are pretty close. I intend short links to engage the reader to read and think it through. In fact, I think you are both saying the same thing, she is just willing to stake out the anti-inflation ground as the most important. The contra was in reference to the title of your piece, not the deeper substance. Probably me being too clever, well clever might not be the right word, but humor isn’t my strong point.
Anyway, I like your stuff. As an aside, I agree with you. We face inflation and deflation in asset prices. In fact, deflation in asset prices can feed consumer price increases, but that is a long discussion.
If you are interested in joining our mailing list, please submit your email below. 
