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It's funny that the justification for having a central bank is supposed to be that it can minimize short-term economic fluctuation through monetary policy. Acco
by Prrometheus 18y ago
It's funny that the justification for having a central bank is supposed to be that it can minimize short-term economic fluctuation through monetary policy. According to supporters of a central bank, the business cycle is supposed to be a failing of an unrestrained free market, not a properly regulated one.
The economic history of the United States is a powerful argument against that assertion.
- nradov 18y agoIndeed. It's funny how the central bankers believe we need free markets for everything except setting interest rates and adjusting the money supply. For those apparently we need a Communist-style central planning bureaucracy. And now in retrospect it's clear that most every major decision made by the Fed for the past decade or more has been wrong, and has made macroeconomic problems worse instead of better. Perhaps Andrew Jackson had the right idea after all (at least on that one issue).