“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.
"There are so many holes in the FTC and Sony’s opposition to the Microsoft-Activision merger… Read More
"A wide range of outcomes are still possible for 2023, ranging from stagflation to a… Read More
"The real 'capitalist achievement,' however, isn’t Graceland. It’s the fact that compared to the stuff… Read More
"The unseen cause of gentrification is the knee-jerk NIMBYism of affluent leftist neighborhood associations. And… Read More
"Politicians on the left would like us to believe inflation is caused by greedy corporations.… Read More
"As 'dark horse' candidate, Ramaswamy has a greater burden of proof before the electorate.… Read More
"The US economy may continue to grow or shrink few percent from year to… Read More
"Forbidding entrepreneurial ventures that have not been granted prior approval and design review by unelected… Read More
*AIER is a 501(c)(3) Nonprofit registered in the US under EIN:04-2121305