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... I don't want the central bank or financial regulator to be doing macroeconomic modelling. I want them to kill financial bubbles, I want them to kill aggressive accounting in the financial sector, I want them to make sure that depositors' money isn't used for gambling and I want them to take insolvent banks through bankruptcy.

Macroeconomic modelling is the Treasury's job. The CB and FR do not need macroeconomic models to do the jobs I want them to do, and if they feel the need for the results of macroeconomic modelling, they can ask the Treasury to do a run for them. Macroeconomic policy is properly the Treasury's turf, and I don't want the CB and FR developing a parallel capability in that area. That would almost inevitably lead lead to a sort of mission creep that I consider harmful in an institution that is traditionally not particularly democratically accountable.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Dec 3rd, 2010 at 02:39:03 PM EST
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