What do you think would happen if an Austrian Economist is given control over the FED???
He/she would do just as bad (in general) as anyone else, outside of the fact that he/she would probably have a strong aversion to lowering the fed funds rate. So, given the current situation, that would be a good thing.
If he operated strictly by his morality, he would do everything in his power to get rid of it and its regulations.
The Fed funds and the discount rate would be raised drastically, the reserve requirement would immediately be raised to 100%, the Fed would cease to use its regulatory powers, it would most likely no longer buy government securities, and it would allow banks to introduce their own currencies.
Fire everyone immediately. Close shop. Go home. Look for honest work.
Good luck. Samarami
I would agree with Samarami and Eliotn. Although closing the FED would likely demolish non-austrian investor confidence, there would be some thing that could increase stability and confidence. He/she would already know that it is impossible for one person or organization to model or accurately predict the monetary trends of the country (let alone the world). I don’t think any person it their right mind would think that this is possible. They would decide that these decisions are best left up to individuals and the free market. Money would then be either fractionally or wholly tied to gold. It is never too late to start!
And for controlling Fed Fund rates? Out of the question! Austrian economists know that this is the easiest way to steal from the citizens. It fed fund were still made available they would have very stable rates. This would only lead investors, who were able, to hold out for lower rates that they know will come. So there would be no centrally controlled interest rates.
Same thing that happened to the anti-Fed Randian Alan Greenspan. Having the ring would consume their soul and they would be unable to resist its power.
He was an Austrian economics citing gold bug at one point…
Down they fall.
Hopefully they would use their position as a pulpit to help enlighten the masses (and in particular the mountebanks that make up Congress) of Austrian economics.
He never was an Austrian economist. Contrary to popular belief, you can be a mainstream economist and a gold bug.
I never said he was an Austrian economist.
I merely implied he had Austrian influences.
They’d be killed, more than likely.