I don’t think it makes sense to criticize the political system for being dysfunctional and then rely on the political system to rescue the economy. I understand that traditional monetary policy tools don’t work that well in this environment: short-term rates can’t go any lower, and lowering long-term rates won’t make companies invest if they don’t think there is demand for their stuff. But there’s always, you know, dropping cash out of helicopters.
Yes, Ben never gets the message in time, he collects it centrally. I think Hayek pointed that out several times. I bitch about it all the time. The problem, James Kwak is discovering, there is more to the economy than what data that Ben can collect.
OK, so I remind James, we do not need helicopters, we have regional Feds, perfectly capable of dealing in municipal debt in their regions. Decentralize the Fed and you can still have your socialist network.However I might remind James the democracy comes with decentralization. Watch the Keynesians, they are notoriously anti-democratic.
No comments:
Post a Comment