Taylor's (and Friedman's) Error »
Posted By Shana4Liberty 7 months, 2 weeks ago in NewsBoth Friedman and Taylor seem to be aware of the fallibility of agency intervention into the supply of money; and yet, inexplicably, both seem in the end to take for granted that the agency in question will be willing to renounce discretion when push comes to shove.
This is equivalent to sitting two-year-old Dick and Jane in a room with a big box of chocolates, telling them they can have only one each, then leaving the room. It just won’t work.
And it’s not Dick or Jane’s fault. Dick and Jane are only two years old. Monetary policymakers are just humans. Humans are control freaks. They are tinkerers. It is a rare economist who, once appointed to the position of Federal Reserve Board Member, can look deep down inside existing economic science and declare the truth of what he finds, i.e. that no one knows how to control monetary policy, with or without a formula.
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Shana4Liberty
I'm a stay-at-homeschooling mom of 4 living in central Alabama, but a native of south Texas. Feel free to friend me and send me ...
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