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Governments do not print, and Central Banks are not actually government institutions. The best a government can do is to borrow money from "its" Central Bank

It is the sovereign that enforces legal tender laws. As such, there is no useful institutional distinction between the sovereign and its central bank.

The useful institutional distinction is between the factions who seek to artificially constrain sovereign outlays (such as by promoting the "independent central bank" game of three-card monte) versus those who are not so blinkered by Mercantilist conventional wisdom. The former group is not exclusively confined to the central bank - if it were, it would be relatively trivial to purge it, since the central bank functions, like all banks in a Chartalist monetary system, purely by the grace of the sovereign.

The problem is not that there is a nominally independent central bank. The problem is that crazy people are in control of the levers of government.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Oct 8th, 2010 at 10:59:19 AM EST
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