Comments - Nationalizing our money - Urgent Evoke2024-03-28T10:10:01Zhttp://www.urgentevoke.com/profiles/comment/feed?attachedTo=4871302%3ABlogPost%3A78218&xn_auth=noHaving the central bank detac…tag:www.urgentevoke.com,2010-04-04:4871302:Comment:793602010-04-04T00:23:42.648ZIron Helixhttp://www.urgentevoke.com/profile/IronHelix
Having the central bank detached doesn't prevent the government from spending money. What a detached central bank does do though is create an interest bearing debt. Secondly, there's a lot of propaganda floating out there about "printing money". In almost every "textbook" instance of runaway inflation, the government 'printed money' to either pay back debt or establish credit for future debt/borrowing expansion. Government inflation for expected government services does not create instability.
Having the central bank detached doesn't prevent the government from spending money. What a detached central bank does do though is create an interest bearing debt. Secondly, there's a lot of propaganda floating out there about "printing money". In almost every "textbook" instance of runaway inflation, the government 'printed money' to either pay back debt or establish credit for future debt/borrowing expansion. Government inflation for expected government services does not create instability. Well, historically the trend…tag:www.urgentevoke.com,2010-04-04:4871302:Comment:793402010-04-04T00:02:42.037ZAlberto Cotticahttp://www.urgentevoke.com/profile/AlbertoCottica
Well, historically the trend has been the opposite one: you want central banks to be MORE detached from the government, to spread out economic power. In the past, the temptation to just print money (or create it activating credit lines) has just been too great for leaders and ministers to resist. And the results have been sour: inflation and instability. :-(
Well, historically the trend has been the opposite one: you want central banks to be MORE detached from the government, to spread out economic power. In the past, the temptation to just print money (or create it activating credit lines) has just been too great for leaders and ministers to resist. And the results have been sour: inflation and instability. :-( Lots of thought and opportuni…tag:www.urgentevoke.com,2010-04-03:4871302:Comment:793292010-04-03T23:33:11.901ZColinoshttp://www.urgentevoke.com/profile/Colinos
Lots of thought and opportunity for debate, a great blog post!
Lots of thought and opportunity for debate, a great blog post!