Robust Political Economy and the Fed – Peter Boettke
“But I wonder if in these discussions of monetary policy in response to the financial crisis the political economy of public policy is not seriously being overlooked. I have in fact raised these concerns before, and while the political economy costs are often acknowledged I don’t think they are fully absorbed into the analysis of those who I have raised my concerns with. I am being a bit uncharitable here because most of my interlocutors are critics of central banking, and thus are fully aware of the problems with a central bank pursuing the “right” monetary policy at the “right” time. But still I think the discussion then moves on “as if” the Fed could deploy the policy instruments at its disposal in a way that would approximate the “best” policy given the circumstances.” Read More.
Robust Political Economy and the Fed
Peter Boettke
Coordination Problem, October 1, 2009.
Hat tip to Daniel J. Smith.
Image by renjith krishnan / FreeDigitalPhotos.net.
