It’s a shame that Greenspan doesn’t have a better image these days. He really lost it all in the 2000's.
While Greenspan admitted to some errors in judgement there were no decisions he made that would have changed the course of the economy. There is only so much that can be accomplished by monetary policy measures. If the Fed gets into advising fiscal policy it risks stepping on toes of those who are responsible for that and usurping some authority away from congress. The power of the Fed is far more limited than the average person believes, and that is largely due to conspiracy theories forwarded by kooks and the politicians that pander to them. I’m always amused by calls to “audit the Fed” when a complete audit is kept on a running basis and available to anyone.
Do you think it would be beneficial to look at money in circulation vs total dollars, in helping to understand this?
I believe in the immediate short term we need to concentrate on simply supplying the economy with some currency that will develop velocity quickly. To discuss what is or isn’t in circulation is a discussion we should have when we get well enough to deal with inequality. I understand fully why Bernie put this cart before the horse, but it eventually leads to taxation policy questions that tend to rally a well funded opposition. Given that public “debt” equals private sector reserves/savings/accumulated wealth, and that those who hold most of that wealth understand economics perfectly, just asking questions will lead to some new think tank being funded to oppose you. Lets get people housed and fed and provided health care and then deal with a less angry voter base to tackle inequality.