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On the other hand the reason why so many modern economies have "outsourced" the decision making on central banking is because when it was up to them, they'd pul
by mattmanser 6y ago
On the other hand the reason why so many modern economies have "outsourced" the decision making on central banking is because when it was up to them, they'd pull the short-term gain, long-term collapse lever too often.
- omginternets 6y agoIt took me a while to put a finger on what seems wrong about this take. I don't think politicians have "outsourced" the work to the invisible hand (n.b.: not banks per se) because they failed to make long-term decisions. I think they "outsourced" the work because it reduces their responsibility in the eyes of the public. The point is that the invisible hand also makes short-term decisions, in addition to all the other problems it produces. This is not an improvement!