Of course Trump hates central bankers – they tell the truth | Torsten Bell

When the Fed locked horns with the president before Christmas, it was clear who wolud be the winnerCentral bank independence is the denim jeans of economic ideas – not fresh but still about as fashionable as economic policy gets. For a quarter of a century, more or less everyone has agreed that central banks should be operationally independent of government.Independent central bankers are better placed than politicians to set the interest rates the economy needs. The latter face the “time inconsistency” problem: they want to cut rates to make us happy today – before an election, for example – even though it will damage the economy tomorrow. Continue reading...

Read more: https://www.theguardian.com/commentisfre...

Similar news

Trump impeachment trial: Here are the highlights from the first day of debate in the Senate 0 0 0
THE MONETIZATION OF OPEN BANKING: How legacy institutions can use open banking to develop new revenue streams, reach more customers, and avoid losing out to neobanks and fintechs 0 0 0
Here's what to expect from Trump's impeachment trial on Wednesday 0 0 0
Vintage NASA images reveal the agency's earliest feats, from launching the first astronauts to building a '70s space station 0 0 0
The US has reported its first case of the deadly Wuhan coronavirus. Here's how to protect yourself while traveling. 0 0 0
U.S. Senate blocks three Democratic bids for documents in Trump impeachment trial 0 0 0
Coronavirus virus case found in the U.S. 0 0 0
Impeachment trial looms over Trump's visit to Davos 0 0 0
Schiff says intelligence agencies are withholding evidence 0 0 0
Senate impeachment trial of Trump begins 0 0 0