Re:Are central banks going bankrupt?
by ElevenLathe on Tuesday October 11, 2022 @11:31AM
(#33164564)
Liberal economics (i.e. the only kind presently understood when you say "economics") wants to have it both ways:
1) The world economy is too complex to be understood fully, so its best to be hands-off and let markets regulate it. Also:
2) The market is no good at regulating the world economy so we have to set up central banks, staff them with personnel from the finance industry, and give them extraordinary powers to create and destroy money and other government-backed securities. We also HAVE to let them do whatever they want with those powers, free from political pressure, since only then can they use their perfect scientific knowledge of economics (which involves math now, so lay people can't understand it without taking off their shoes) to the task of selflessly minimizing unemployment (or maybe keeping inflation down, they get to pick which) and therefore making everyone richer.
1) The world economy is too complex to be understood fully, so its best to be hands-off and let markets regulate it. Also:
2) The market is no good at regulating the world economy so we have to set up central banks, staff them with personnel from the finance industry, and give them extraordinary powers to create and destroy money and other government-backed securities. We also HAVE to let them do whatever they want with those powers, free from political pressure, since only then can they use their perfect scientific knowledge of economics (which involves math now, so lay people can't understand it without taking off their shoes) to the task of selflessly minimizing unemployment (or maybe keeping inflation down, they get to pick which) and therefore making everyone richer.