The Futility of Central Banking
10 Pages Posted: 19 Apr 2013
Date Written: October 19, 2010
In light of the Great Financial Crisis, it should now be clear, in case it wasn’t long ago, that central banks generally, and the Federal Reserve in particular, not only are unable to prevent financial and monetary catastrophes, but are unable to resist pursuing policies that inadvertently help to cause such catastrophes.
Keywords: discretionary central banking, rules of monetary policy, preventing financial crises, asset bubbles, federal reserve policies
JEL Classification: F50, F52, F58, E62, N22
Suggested Citation: Suggested Citation