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CPI is a horrible way to measure inflation. This is a pretty biased piece coming from the former chairman of the Fed. It takes for granted that we need centra
by joshfraser 12y ago
CPI is a horrible way to measure inflation. This is a pretty biased piece coming from the former chairman of the Fed. It takes for granted that we need centralized organizations to control the supply of money and that our only option is never-ending inflation. There are many who believe we'd be better off it we ended the Fed and the tax of inflation that devalues our money and punishes savers.
- guelo 12y agoIs there an example of a successful economy that ran without a central bank?
- Mikeb85 12y agoWell, the main purpose of a central bank is to issue currency, so an economy without a central bank would need to use something else as currency (either a foreign currency, or some sort of commodity like gold or grain).
- antientropic 12y agoThe US had its own currency long before it had a central bank.
- ArkyBeagle 12y agoYou can look up the Free Scots Banks. Successful? Hard to say.
- mkempe 12y agoThe USA before 1913. See [1] for a detailed treatment of economies that thrived without central banking. [1] http://www.amazon.com/dp/B004VMUL6G http://www.amazon.com/dp/B004VMUL6G
- dap 12y agoWhat about an example of a major economy without a central bank that survived a major depression (say, the size of the Great Depression)? Or counterexamples? (I believe there are counter-examples -- nations with no central bank that took a worse beating than other nations that had a central bank during a major recession -- but I cannot remember them. Sorry.)
- mkempe 12y agoNobody can offer such an example, because the boom-bust (depression) cycle itself is caused by the interventions of central bankers.
- tedunangst 12y agoBank failures and panics were a regular feature of life in the US before 1913. Take your pick of the panic of 1873, 1884, 1890, 1893, 1896, 1907.... I wouldn't use the word "thrived".