Paul Ryan was wronger than was thought possible

Via Digby, here’s Paul Ryan in 2008:

Yesterday, the Federal Reserve lowered the fed-funds rate to 2%, its lowest  level since late 2004. In a nod to growing inflation fears, the Fed said “it  will be necessary to continue to monitor inflation developments  carefully.”

But if we really want to do something about inflation,  Congress should repeal the Humphrey-Hawkins Full Employment Act of 1978, which  dangerously diverted the Fed from its most important job: price stability. When  the Fed was created in 1913, its principal role was to maintain a sound currency  with stable prices. But Humphrey-Hawkins changed the Fed’s mandate, directing it  to focus on long-term price stability and short-term economic  growth.

Unfortunately, in its efforts to accomplish both, the Fed could  end up satisfying neither. This would make the next 18 to 24 months even more  painful, as the Fed reverses course and sharply raises rates to wring inflation  out of the economy. These Fed-induced boom and bust cycles are detrimental to  our long-term economic growth and living standards.

Congress is already threatening the economic climate by dangling the prospect of  huge tax increases ($683 billion in the House-passed budget) and sharply higher  spending. There is no sign that Congress will change its tune on fiscal affairs  – but passing the Price Stability Act is a chance at a bipartisan commitment to  sound money.

That’s right, in the run-up to the worst recession since the Great Depression, Paul Ryan was more worried about inflation than jobs. Within a year, there was a very real danger of  deflation which would have been disastrous.

So, in a late tribute to Ryan, here’s some music:

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