Central Bankers get way bolder.

Central Bankers get way bolder.

From Jackson Hole, Today August 28th on Reuter’s Main News Page.

“Fiscal “alchemy” must mimic monetary science”

http://www.reuters.com/article/idUSTRE67R13H20100828

If I read this correctly, they are saying that Congress is inept (and by extension, also are the people who voted them in), and for the sake of professionalism, the central bankers must endeavor to ‘influence’ fiscal policy.

Excerpt:

“Central bankers are likely to have to pay more attention to taxation and budgeting in the future as the stresses from the financial obligations of retirement programs increase, he said.

Since there is general agreement that central bank decisions should be made without political meddling, financial markets can be reasonably confident of policy makers’ responses to a slowdown in economic growth or a rise in inflation, Leeper said.

However, no such predictability exists for fiscal policy, which can shift with political winds.”

Translation:
So they want to extend the Central bank’s mandate beyond printing money and creating ponzi schemes, to full governance, taking on taxation and spending, i.e. usurping the constitutional role of Congress.

They make some comments about retirement programs and Social Security, about the debate over reducing benefits or raising taxes.

Don’t we want Central Banks to handle these things too?

Sure. Right.

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Also, isn’t it great, as per the title of the article, that what they do they call “monetary science”!

What a joke!