Monetary policy no longer works. It’s trying to control too many variables with not enough tools. Bio-finance, like in the Biology, small continuous changes guarantee evolution, shots only disruption

Monetary policy no longer works. It’s trying to control too many variables with not enough tools.

Bio-finance, like in the Biology, small continuous changes guarantee evolution, shots only disruption

The point is, I think, that you can’t have effective monetary policy at the macro-level if monetary policy has to do micro-level interventions. You may not even be able to do those interventions at all, and I have my doubts about doing the whole of macro policy with monetary policy. And we already assume that macro-level monetary policy exists in order to avoid doing micro-level interventions. Central banks getting interested in regulatory intervention do so, in part, to get enough requisite variety so that monetary policy can work.

http://fistfulofeuros.net/afoe/in-search-of-requisite-variety-central-banks-and-property-bubbles/

 

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