Hi, this is my first post here, but I've lurked for a few years.
I'm an armchair economist and have a basic understanding of macro economics and supply and demand. I understand the arguments against the Fed and certainly share the sentiment, but what's the alternative? There are suggestions for a free-market currency but I can't see the advantage to that. There are also suggestions for returning to the Gold Standard and doing-away with revaluation but I also don't see the advantage to that.
As long as it's done correctly, the benefit we get from a non-government central bank which revalues the currency is that we can respond to inevitable economic changes. Because there are always changes to commodity, durable good and service supply and demand, a country's economy will always be dynamic. To the extent of my limited knowledge it seems to best way to deal with this is to adjust interest rates to increase or decrease borrowing and spending.
There are far more knowledgeable people than I here at FF. Am I missing something, am I too uninformed? Does anybody have an argument for a non-governmental alternative to a central bank?
Thanks, looking forward to some responses.
Rob M.
I'm an armchair economist and have a basic understanding of macro economics and supply and demand. I understand the arguments against the Fed and certainly share the sentiment, but what's the alternative? There are suggestions for a free-market currency but I can't see the advantage to that. There are also suggestions for returning to the Gold Standard and doing-away with revaluation but I also don't see the advantage to that.
As long as it's done correctly, the benefit we get from a non-government central bank which revalues the currency is that we can respond to inevitable economic changes. Because there are always changes to commodity, durable good and service supply and demand, a country's economy will always be dynamic. To the extent of my limited knowledge it seems to best way to deal with this is to adjust interest rates to increase or decrease borrowing and spending.
There are far more knowledgeable people than I here at FF. Am I missing something, am I too uninformed? Does anybody have an argument for a non-governmental alternative to a central bank?
Thanks, looking forward to some responses.
Rob M.