Op-ed: Is central banking the problem or the solution?
Monetary policy: it doesn’t make headlines like drone stikes or police militarization, but it really should. Considering how much the decisions of central bankers affect the global economy, it makes little sense that candidates and politicians are not regularly questioned about their approach to monetary policy. In an op-ed published last Friday in The Hill, Dr. Judy Shelton did just that.
Throughout her piece, Dr. Shelton reminds us that decisions made by central bankers at the Federal Reserve and the European Central Bank could bring themarkets crashing down around us. Shelton asks, “what if the central bankers get it wrong? What if Yellen and Draghi not only fail to anticipate the next global financial crisis, but inadvertently trigger it through misguided monetary policies?”
Although the financial crisis of 2008 might be fading from our collective memory, the threat of another crisis is very real. Yet, Shelton notes that “policymakers have neglected to make meaningful changes to the global financial architecture, even as the rise of financial complexity and bank interconnectedness across the world threatens a yet more spectacular collapse should things go wrong.”
Ultimately, our financial future rests in the hands of central bankers and so “Americans should start demanding answers before we are asked to pay the price yet again for an unanticipated global financial crisis that is all too predictable.”
To read Dr. Shelton’s article in its entirety, click here.
