Re: The Federal Reserve: Love it or Hate it
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It might be a little results oriented, but I like the Fed because it has been successful. Since the Depression, there has not been a severe economic downturn (defined by joblessness and GNP) or unmanageable inflation. The economy has functioned particulary well over the last 20 years.
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Sorry iron this is silly reasoning. The Fed has been around since 1913.
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yes, but the fed only really began operating as it currently does far later in its existance.
and to those who say the fed is theoretically flawed, what is the theoretically correct system? no intervention at all? that would create other problems and distortions that would take a long time to correct with each passing cycle and would always swing far from "equilibrium."
there are costs to a centrally controlled monetary system (many have been mentioned), but i don't think they are massive enough to warrant the costs of a totally free economy where human irrationality causes swings that would widely distort the system and affect everyday life of those in the system.
Barron
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