Ironically, in a world swept by free-market policies launched by Ronald Reagan and Margaret Thatcher 20 years ago, the U.S. Fed and central banks the world over remain the last practitioners of Soviet-style central planning.
That the economy is languishing is no big surprise. Overburdened by excess tax payments and a shortage of Fed-induced cash, along with a Y2K hangover and a couple of nasty energy-price shocks, current economic growth is just about zero right now.
Milton Friedman thinks the Fed is too loose. Supply-siders believe the Central Bank is too tight.
~ Larry Kudlow, "Letting Alan Off The Hook," National Review, February 13, 2001