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Note that I said they try to maintain low levels of inflation. It's sure better than nothing. The economy is a chaotic system, and you need to use all means at
by chad_oliver 13y ago
Note that I said they try to maintain low levels of inflation. It's sure better than nothing. The economy is a chaotic system, and you need to use all means at your disposal to try to counter the boom-and-bust cycle.
- ekianjo 13y ago> The economy is a chaotic system It's certainly been even more chaotic since Central Banks have so much power in the first place. How many crashes were directly linked to the artificially low interest rates decided by the Central Banks ?
- chad_oliver 13y agoYeah, they've got far too much power. We should stop trying to regulate the economy. The market knows best. </sarcasm> I don't think that Central Banks have always made the right decisions. To the contrary: they're made plenty of bad mistakes. But they have to keep trying, because the alternative is much worse. And slowly, very slowly, we'll get better at riding the dragon.
- ekianjo 13y agoObviously we are not on the same end of the philosophical spectrum, because of course the market knows best. The market is the sum of invididuals' actions. No amount of geniuses sitting around a table can predict how each decision they take impacts people's lives. That's why Central Banks make stupid decisions. It's not that they are learning, it's the best they can do. And Central Banks were supposed to be independent in the first place from political power, but we all know how that turned out.
- chad_oliver 13y agoFair enough. I disagree with your position, but I can see that it is entirely consistent with your starting assumptions.