In response to:

Can We Envision a World without a Central Bank?

Blair31 Wrote: Sep 20, 2012 7:47 PM
No, but the gold standard failed during the Great Depression. Just watch Milton Friedman.

I’ve expressed concern about QE3 and other decisions by the Federal Reserve about monetary policy, but I have also admitted that it’s difficult to know the right monetary policy because it requires having a good idea about both the demand for money and the supply of money.

But this raises a bigger issue. The only reason we expect the Fed to “know the right monetary policy” is because it’s been assigned a monopoly role in the economy. But not just a monopoly role, we also expect the Fed to be some sort of omniscient central planner, knowing when...

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