Monday, August 26, 2013

No more Fed...

Federal Reserve, that is.  Fed Chairman Ben Bernanke's term is up next year, and financial pundits and economic experts (whoever, and whatever, that means) have identified two likely replacements.  But as Sheldon Richman, Vice President of the Future of Freedom Foundation, argues in a forceful article at Reason.org, we should not only not replace Bernanke, we should "Delete the Fed" entirely.  And here's why:
The fact is, we need the Federal Reserve like we need a hole in the head. Contrary to folklore, the Fed is not needed to stabilize the economy or to prevent unemployment. As the Fed heads into its second century, we ought to realize that its record is terrible. Even if we don’t count the interwar period (which some economists call the new Fed’s practice round), America’s central bank is a flop.
Richman discusses the findings of an important research article showing how the Fed has failed in virtually all of its formally delineated policy charges.  Good stuff, check it out.