Perhaps inside every macroeconomist is a philosopher-king trying to get out?
Alex J. Pollock
The cycle of sovereign borrowing, default, and new borrowing has a long and continuing history.
Bernanke, Geithner, and Paulson tell their story: "For all our crisis experience, we failed to anticipate the worst crisis of our lifetimes."
Although they are monetary and economic experts, do central banks have the requisite knowledge to succeed?
Central banks usually feel the urge to pretend to know more than they can, in order to inspire “confidence” in themselves.
Both banks and governments often make big mistakes at forecasting the economic and financial future.
There are no financial philosopher-kings and there can never be any, in central banks or anywhere else.
Modern central banks keep attempting to manipulate prices to a different and “better” outcome than the market would provide, but what does this achieve?
Innovation offers the greatest engine for growth the world has ever seen, but why do so few people realize how good we have it?
Adair Turner's account of financial markets is insightful but misunderstands the role of the state in creating financial crises.
Is the Federal Reserve a philosopher king or servant of the treasury?
