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Tuesday, July 2, 2013

Read the last two paragraphs. The politics of central banking.


I remember Rick Mishkin gave a speech here at ECU entitled "Modern Central Banking...Has it become like Modern Dentistry?" Of course this was before our little event in 2008. It is hardly dentistry anymore.



http://www.project-syndicate.org/commentary/the-political-entanglement-of-central-banking-by-raghuram-rajan

1 comment:

rtdownes said...

Dr.P,
I view the situation a bit differently. I see the politics as a possible and unfortunate constraint (despite the central bank's "independence") resulting in the current stance of excessively tight monetary policy. I often wonder how policy would differ today (and the past 5 years) if Bernanke were the sole member of the FOMC. I'm (undoubtedly like yourself) anxiously awaiting the Chairman's memoirs - hopefully he won't hold back.

Good to hear from you.