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You're assuming folks in charge of monetary policy: a)know what they're doing (they're not: large economies are chaotic systems, anyone pretending to know
by ur-whale 4y ago
You're assuming folks in charge of monetary policy:
a)know what they're doing (they're not: large economies are chaotic systems, anyone pretending to know what effect pushing a lever will have is either delusional or a bald-faced liar)
b) have an agenda that's aligned with the greater good. News at 11 : they're not. Their agenda is to stay in power.
- beej71 4y agoI'd dispute point (a) partially. It's possible to have some insight and knowledge that has an at least partially predicted effect. But it is chaotic, so effectiveness is limited. And I'm skeptical of (b), depending on your definition of "greater good". But in our context here, "greater good" means monetary stability. In this case, the power of the rich people with the money is greater than the power of whoever is in charge of monetary policy. And the people with the money want to preserve value. They will have anyone ousted who doesn't do that. Or put another way, the best way to stay in power in the fed is to keep things going smoothly and upwardly.