A Question for Our Readers

by Liberty and Power

Is there anyone out there who still thinks that "independent"central banks are independent?

More Comments:

Mark Brady - 9/23/2007

"I doubt it, but I'm not sure of the point, as I doubt that any centralized monetary authority is going to be free from influence, whether public, private, or hybrid."

I agree, there can be no truly independent central bank. And recent events demonstrate this very clearly.

"If the point is that there should not be one, I would be interested to hear the logic and--far more important--how one would do without monetary policy at all."

There is a centuries-long intellectual tradition in favor of so-called free banking. And there are many long-lived and short-lived historical examples of free banking in practice. To begin your inquiries, I suggest you follow the links here at the Library of Economics and Liberty. And search for books by Lawrence H. White, George A. Selgin and Kevin Dowd.

Oscar Chamberlain - 9/22/2007

I doubt it, but I'm not sure of the point, as I doubt that any centralized monetary authority is going to be free from influence, whether public, private, or hybrid.

If the point is that there should not be one, I would be interested to hear the logic and--far more important--how one would do without monetary policy at all.