tag:blogger.com,1999:blog-4159906646513306121.post2023592005921630894..comments2023-11-19T20:38:50.237-08:00Comments on Economic Logic: The end of central banking as we knew itEconomic Logicianhttp://www.blogger.com/profile/10171296292101248614noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4159906646513306121.post-8097256846664318212012-10-17T11:32:11.614-07:002012-10-17T11:32:11.614-07:00EL, you make a lot of sense here. We have now cent...EL, you make a lot of sense here. We have now central banks that appear to be in charge of labor market policy, and as there is more and more evidence of structural changes, even long-term labor market policy. This is not what the central banks are designed for. And the risk of corrupting central banks is real, especially in Europe where it is not industries but countries that push for the "right" policies. And this even though the ECB has a single mandate that is silent on the labor market.<br /><br />In the US, the only agency that is free from politics and does its job is the Fed. Given the situation, it takes more responsibilities, but this is clearly not the best outcome. The Federal Reserve Act needs to be amended to focus on a single mandate, the price stability one, to force the government to actually do something about labor market policy in trying times.Anonymousnoreply@blogger.com