Re:What to read to understand central banking
by mellavora on Thursday September 08, 2022 @05:44AM
(#32763337)
> Why the fuck would full employment be a goal of a central bank. Talk about paperclip optimization.
Agree it does not seem (at first glance) to be a reasonable policy goal for a bank, and further this mandate does not hold for all central banks. <edit> For example, the ECB does not have this mandate </edit>
However, some economists believe there is a relationship between % of population "employed" and inflation.
Employed in quotes because, well, see the other HN post today
https://news.ycombinator.com/item?id=32738538
about the costs of caring for parents as an example of actions which create direct,large, partially measurable social benefit but don't count as 'employment'.
Agree it does not seem (at first glance) to be a reasonable policy goal for a bank, and further this mandate does not hold for all central banks. <edit> For example, the ECB does not have this mandate </edit>
However, some economists believe there is a relationship between % of population "employed" and inflation.
Employed in quotes because, well, see the other HN post today https://news.ycombinator.com/item?id=32738538 about the costs of caring for parents as an example of actions which create direct,large, partially measurable social benefit but don't count as 'employment'.