This week we speak with Paul McCulley, former chief economist at PIMCO, and oft mentioned FOMC candidate.
McCulley worked closely with Bill Gross at PIMCO for many years, and was brought back to PIMCO after Mohamed El Erian stepped down. He coined such well known phrases as “Shadow Banking System” and “The Minsky Moment.”
McCulley noted those who claimed QE and ZIRP were going to cause inflation and the collapse of the dollar were totally wrong, and he demanded these critics of the Federal Reserve owe former Ben Bernanke an apology. Had the Fed Chief listened to them, we would have found ourselves in a modern day depression.
He is leery of those who believe the Government and Federal Reserve should have let the crisis run its course on its own, with zero interventions. He is especially harsh on the Austerians, whom he said made the recovery weaker than it need be by thwarting traditional Keynesian stimulus.
Next week, we speak with Harry Shearer of The Simpsons, Spinal Tap and SNL.