Source: Cobden Centre
by James Anderson
“American Banker John A. Allison, in a 2012 paper, provided a pertinent anecdote in which he explained that he had asked a number of members of the Federal Reserve’s Open Market Committee whether they believe that price controls work, to which each central banker stated something along the lines of: ‘Absolutely not, price controls never work — they are destructive.’ Allison then followed up their answer with: ‘When the Federal Reserve sets interest rates isn’t that really a price control? Isn’t the interest rate perhaps the most important price in the economy?’ He then states that ‘not one of them has given me a credible answer.’ (Allison, 2012, p. 271) Monetary policy is central planning, albeit central planning in a very subtle and roundabout – but nonetheless real and pervasive – way.” (10/03/24)
https://www.cobdencentre.org/2024/10/central-banking-knowledge-and-unintended-consequences/