Things I Won’t Have Time to Say III: Rethinking Macro Policy III Conference, Washington D.C., April 15-16

Rethinking Macro Policy III: Progress or Confusion?

Things I am almost surely not going to have time to say III:

Can, in a political-economy sense, central banks be trusted with the full-employment-and-price-stability stabilization-policy mission? Are they not captured, to too great an extent, by the commercial-banking sector that, myopically, favors higher nominal interest rates to directly improve bank cash flows and indirectly dampen inflation and so redistribute wealth to nominal creditors–like banks?

No, they cannot be trusted. Yes, they are captured to too great an extent by the commercial-banking sector. Yes, the commercial banking sector is very myopic in its conventional wisdom.