9 thoughts on “Free markets don’t have central banks

  1. A similar theme here:-

    http://sev.prnewswire.com/banking-financial-services/20070926/CLW02226092007-1.html

    Steve Forbes says:-

    “Make no mistake that if you destroy credit in an economy, everyone’s going to go down, because even if you have globs of cash — your business doesn’t need outside capital — but if your customers are getting hurt you’re not going to have sales — we (customers) depend on credit … what the Federal Reserve should do is not slam on the brakes … what they should do, but they won’t, is float interest rates, stop trying to guess the markets on interest rates, they have no more idea where interest rates are going to go than you and me.”

  2. Pingback: Greenspan on Central Banks « ozrisk.net

  3. I think the Internet is improving literacy in regards to such matters. However it will take a generational change before new thinking takes root in the halls of power. We are in the midst of a revival in which old ideas are new again and current ideas are being challenged. The Internet age of engaged learning is displacing the TV age of passive learning. There is a lot of reason to be hopeful that the age of central banks is entering it’s home stretch. However I doubt that leadership on this matter will come from the USA.

  4. Terje, I agree, I think it’s the small nations that will lead innovative economic policy, nations like Ireland, Estonia, even New Zealand, ones with access to large foreign markets.

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