I saw an interesting clip on YouTube, perhaps it was of Hayek, but there was a quote that basically said something like, “the test of a good economist is that he didn’t believe in the correlation between unemployment and inflation.” It went on to say that this was settled economics in the 18th century, so it was alarming the Keynes dug it back up and it somehow survived even until today. In fact, every time Bernanke is grilled by Ron Paul, he always falls back on his pat answer about how Congress mandated the Fed to manage unemployment through inflation, so he’s just doing what he’s mandated to do.
So if this was settled way back when, why isn’t it thrown in Bernanke’s face or Congress’ face? I’m so sick of hearing this excuse. It’s like hiding in plain sight and it pisses me off.