Central Banking models

Quote from Apex:

CBs are essentially responsible for rescuing the financial system last fall. Who knows how far we would have sunk if they had let all the troubled businesses fail? At the same time, had we not built our kingdoms on debt, perhaps this crash would have never been a possibility?
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It's called Order out of Chaos...

by this, I mean, first define what you want, then call it the solution.

Then think of a problem, who will need your solution...

Finally artificially create the problem...

Now you are the savior :)
 
Quote from Apex:

What kind of responses am I looking for? One of two I suppose ... The first would be a pro-CB stance, which would advocate a certain CB model and extol its virtues. The second would be an anti-CB stance which would explain what kind of alternative would be appropriate.
CBs are essentially responsible for rescuing the financial system last fall. Who knows how far we would have sunk if they had let all the troubled businesses fail? At the same time, had we not built our kingdoms on debt, perhaps this crash would have never been a possibility?
More...
Well, I am in the staunch pro-CB camp. If there's anything that the crisis has taught us, it is that we still don't know how to deal with the fundamental problem of any capitalist economy, specifically, the provision of public goods.

I am not saying that the Fed is THE solution, as I think there's a few CBs with a better record out there. However, the institution is necessary, in my view, even though its current design may have flaws.
 
Quote from Martinghoul:

Counterfactuals aside, I'd be very happy to listen to any and all logical arguments arnd why the existence of the Fed has made the situation worse.
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easy, it's called the russian paradigm...

The indivual actions of free indiviual will always lead to a better results... fairer, efficienter, nicer...

So how could a very smart group of people, outsmart the all community ?

They will always be to slow, or to fast in raising or lowering, secondly by the incertitude their actions create in the market place they lower the efficiency of the system...
 
Quote from Martinghoul:

Well, I am in the staunch pro-CB camp. If there's anything that the crisis has taught us, it is that we still don't know how to deal with the fundamental problem of any capitalist economy, specifically, the provision of public goods.

I am not saying that the Fed is THE solution, as I think there's a few CBs with a better record out there. However, the institution is necessary, in my view, even though its current design may have flaws.
More...

the only fundamental problem of any capitalist economy is :

what's the value of money...
 
Quote from Martinghoul:

IMHO, they are necessary for a dynamic modern economy...
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Marting... cynics like me define your phrase above as:

"We need a Central Bank to better strip wealth from the productive members of the economy, and to concentrate wealth in the hands of the elite few."
 
Suppose we were to say however that a CB is more or less necessary ... what kind of model do you think is most likely to produce desired results? Under what criteria should it be judged??
 
And had two attempts on his life because of it.

Quote from Scataphagos:

Andrew Jackson abolished the equivalent of our central bank during his administration.
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