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> Additionally, a central bank can (and should) act to stabilise the value further. When there are financial crises there are a variety of powers that can be us
by nateabele 14y ago
> Additionally, a central bank can (and should) act to stabilise the value further. When there are financial crises there are a variety of powers that can be used by a central bank to try and mitigate problems that could be exacerbated in a currency without this feature. Having a central bank with a variety of monetary powers is therefore a positive.
Right up until that central bank wipes out the middle class when 40 years worth of bills (i.e. inflation) finally come due.
- Nursie 14y agoRight up until that central bank wipes out the middle class... I do love a good bit of hyperbole! I'm not really sure that's happened, has it? In fact it looks to me like the central banks of the world have tried their darnedest not to let their respective currencies collapse, and mostly to good effect. I certainly wouldn't argue that every fiscal decision made by the powers that be is a good one, or even that they're overall doing a great job. I still prefer them over a currency where there is no ability to do this.