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It’s interesting that there’s an unstated assumption behind your comment: we need a central authority to plan some, maybe many, aspects of the economy.
by marcell 6y ago
It’s interesting that there’s an unstated assumption behind your comment: we need a central authority to plan some, maybe many, aspects of the economy.
- pa7x1 6y agoWell, the fact of the matter is that the central authority exists and is taking active corrective actions on the economy right now. My observation is that the tools and levers they use to steer the economy are limited and there are consequences to this self-inflicted limitation. If this central authority is even necessary is an entirely different discussion. My current view is that the economy viewed as a dynamical system is subject to strong positive-feedback loops and these are known to cause ugly behaviors in the solutions of a system (the equivalent of boom and busts in economics). Introducing forces contrary to those positive-feedback loops to stabilize the economy may make sense theoretically. The jury is out if central bankers can do this, know how to do it or if the political incentives are there to even make it happen.