Alexander Friedman writes:\u00a0\u00a0In his Pulitzer-Prize-winning book, Lords of Finance, <\/i>the economist <\/i>Liaquat Ahamad tells the story of how four central bankers, driven by staunch adherence to the gold standard, \u201cbroke the world\u201d and triggered the Great Depression. Today\u2019s central bankers largely share a new conventional wisdom \u2013 about the benefits of loose monetary policy. Are monetary policymakers poised to break the world again?<\/p>\n
Orthodox monetary policy no longer enshrines the gold standard, which caused the central bankers of the 1920s to mismanage interest rates, triggering a global economic meltdown that ultimately set the stage for World War II. But the unprecedented period of coordinated loose monetary policy since the beginning of the financial crisis in 2008 could be just as problematic. Indeed, the discernible effect on financial markets has already been huge. \u00a0\u00a0Banking Dominates FInancial Policy?<\/strong><\/a><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Alexander Friedman writes:\u00a0\u00a0In his Pulitzer-Prize-winning book, Lords of Finance, the economist Liaquat Ahamad tells the story of how four central bankers, driven by staunch adherence to the gold standard, \u201cbroke the world\u201d and triggered the Great Depression. Today\u2019s central bankers … Continue reading ![\"Loose](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/07\/Loose-Money-Poilcy.png\")
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