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This breaks down when multi-term policy decisions need to be made. This would only push them to kick the can down the road
by errantmind 5y ago
This breaks down when multi-term policy decisions need to be made. This would only push them to kick the can down the road
- srcreigh 5y agoWhat if they are paid based on performance in 10 years, after they are out?
- handmodel 5y agoWould certainly be better but I would say ten years is not a crazy long time when it comes to borrowing decisions that often have 30 years timetables. Also doesn't capture in the the unequalness of gains. Which is better - the fed doing something that has 90% chance of huge gains or a 10% chance of catastrophic economy shattering loss? Or an 80% chance of huge gains and a 20% chance of gains netting 0? The first is much more desirable if maximizing a bonus and could be tempting - but I dont think we want that risk.
- spaetzleesser 5y agoIt’s the same problem as CEO pay. But measuring success is even harder.
- FormerBandmate 5y agoYeah, this is about what I’m thinking. Normal salaries but options for massive payouts if things do well