"Central Banks Should Be Scrapped"
"What else would he do? "Get rid of the Fed." Dylan would dump central banks completely and go for free banking instead. There'd be no gold standard, "no anything standard" and no Ben Bernankes knocking around fixing the cost of capital.
Why? Because, says Dylan, how can central bankers possibly know what the cost of capital should be? Look back over the last 20 years. "How do we know that this massive debt bubble was not caused by them getting it wrong?" Maybe 2% inflation wasn't the right level. "Maybe it's 0%, maybe -2%." We are always being told to trust the market, "to allow the market signal to work its magic" when it comes to everything from wages to the price of electricity. But when it comes to interest rates we are told that without central bankers "the economy wouldn't be able to behave itself."
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