jump to navigation


Posted by OromianEconomist in Central Bank, Economics, Uncategorized.
Tags: , , ,



“The conventional public’s view of Central Banks is that a man walks into a bank and deposits money. Another man walks in and borrows it and the interaction of savings and borrowing with regard to risk and security form the rate of interest. IS-LM goes a bit further to explain this.

The reality – The Socialist Dictator Model. The Socialist Dictator is the Governor of the Central Bank. The Committee are the other board members. Together they ‘plan’ the interest rate for the entire country or continent i.e. ‘forward guidance’. Instruments; The Base Rate is short term market manipulation, Quantitative Easing is long term market manipulation. The Committee have the objectives of low, stable inflation and ‘financial stability’.”


No comments yet — be the first.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: