• <abbr id="ck0wi"><source id="ck0wi"></source></abbr>
    <li id="ck0wi"></li>
  • <li id="ck0wi"><dl id="ck0wi"></dl></li><button id="ck0wi"><input id="ck0wi"></input></button>
  • <abbr id="ck0wi"></abbr>
  • <li id="ck0wi"><dl id="ck0wi"></dl></li>
  • Home >

    Washington Observation: Why Does A Country Need A Central Bank?

    2010/12/22 9:25:00 67

    The Central Bank Of The United States Federal Reserve

    Why

    Country

    You will need it.

    central bank

    Some countries have developed without central banks. Without countries, complex financial systems can be established step by step.

    Conversely, some countries suffer from the central bank, such as Zimbabwe.


    The federal reserve system was created by the congressional act of 1913.

    Then, during the first World War,

    Federal Reserve

    The policy led to inflation and the economic depression between 1920 and 1921.

    1920s is a time of great prosperity, but this is not so much about the Federal Reserve's policy, but rather the wise fiscal policy of the Treasury Secretary, Alan Romano.

    The Fed's policy during the great depression was disastrous. Bernanke can take this as a warning.


    Canada has no central bank, and its banking system has been weakened in the great depression.

    Unlike thousands of small and functional banks that exist in the United States, only a few banks in Canada have branches throughout the country, which can withstand local withdrawals.

    Even during the great depression, the failure of the banking industry in the United States was concentrated in a few areas.

    As for the Central Bank of Canada, the Bank of Canada was built in 1935 under the pressure of other parts of the world. There was no central bank.


    In short, the central bank is neither sufficient nor necessary for the development of modern economy and financial system.

    People now have a lot of suggestions for reforming the Federal Reserve, but there is no consensus about the rationality of the system.


    Policymakers debated the Federal Reserve's dual goal of price stability and full employment. Panth, a congressman in Indiana, has introduced a bill to revise the Federal Reserve's bill as long as the Federal Reserve has a target: price stability.

    Many people believe that the dual goal is to give the fed an impossible task: to use one policy tool to achieve the two best tasks at the same time.

    It is also unclear whether the central bank has the ability to achieve full employment.


    But even maintaining price stability is not the initial function of the Fed.

    In addition to some economists, few believed that the Fed's function was to maintain price stability.

    You know that Kim has maintained price stability for a long time, and the Federal Reserve's work at that time was to maintain the gold standard.


    In nineteenth Century, the famous British economist and journalist baght once described London Financial Center: the discussion of money market is the practice of studying central bank.

    Baght observed that the existence of the Bank of England made money storage centralization.

    He himself prefers banks that are self financing.

    These banks hold short-term assets that can be marketed immediately.


    Baght's goal is to design a central bank policy so that commercial banks will operate in normal times without a central bank.

    If there is a liquidity crisis, commercial banks will seek support from the Bank of England.

    This last straw is a common function of the Federal Reserve and other central banks today.

    This function provides the Fed with a possibility that the Fed can adopt flexible monetary policy, and its money supply can be increased or contracted.


    The first round of quantitative easing in the Fed appeared in the autumn of 2008, in response to the liquidity crisis after the collapse of Lehman Brothers in September 15th.

    We do not know how to continue this practice after the first round of quantitative easing in 2008.

    It is very likely that the first round of quantitative easing is too long, and the quantity is too large.

    The Fed also forgot about the principle of borrowing put forward by baght: the central bank should use punitive interest rates to provide loans to banks with good assets.

    This principle ensures that emergency loans will not become subsidized projects.

    From this perspective, I think economists will discuss whether the financing plan is reasonable in 2008.


    Today, there is no crisis of liquidation, and there is no reason to continue with this lender of last resort.

    But we will also face another problem: there may be a large number of unrecognized losses related to the loan crisis and other unwise loans in the balance sheet of the banks.

    These losses mean that these institutions are actually short of capital, which is obviously not a short-term liquidity problem.


    The Fed's critics are increasingly finding that the Fed is actually an unelected financial institution.

    Its aid to specific institutions constituted the allocation of credit and the strange large-scale bank financing action.

    Low interest rate policy is an integral part of the bank's support plan.


    At the same time, because there is no federal reserve policy to repair the banking system, the economy is worsening.

    It was the failure to repair the banking industry, rather than the threat of deflation that did not exist, which led to the so-called lost ten years in Japan in 90s.

    A large, non recognized deficit bank will lose its old losses and new loans will cease.


    Today, regulators should ask banks to record their assets and refinance, rather than extending financing plans to small and medium-sized banks.

    Now, countless banks are seeking to raise their shares, but now it is time for the banks to increase their capital when they are not expanding their shares.

    At the same time, the Fed must stop its fiscal policy in the name of monetary policy.

    It is a terrible idea for the fed to raise money for the declining banks with taxpayers' money.

    But if Parliament does such a thing, it can at least carry out democratic discussions and open operations.


    As long as the Federal Reserve adheres to the traditional monetary policy, the Federal Reserve can maintain its independence.

    But if it behaves like a fiscal authority, ordinary citizens and their representatives will ask: why do we need the central bank?

    • Related reading

    Comment: Energy Saving And Emission Reduction &Nbsp; Improve Quality

    Expert commentary
    |
    2010/12/21 19:00:00
    71

    Ye Tan: Three Breakthrough Prices

    Expert commentary
    |
    2010/12/21 9:18:00
    47

    Zheng Cotton Futures Rebounded High Inflation Can Still Be Expected To Rebound.

    Expert commentary
    |
    2010/12/20 17:59:00
    50

    Sun Ruizhe: "12Th Five-Year" Is An Opportunity For The Textile Industry To Change Its Growth Pattern.

    Expert commentary
    |
    2010/12/20 17:18:00
    41

    郭田勇:如何看待人民幣的外升內貶

    Expert commentary
    |
    2010/12/20 9:51:00
    67
    Read the next article

    Meng Tingwei Opens In Shanghai And His Son Is Stunning.

    Since it was the last tour of the 20 year tour, Meng Tingwei still sat in the air and sang in the air. Besides the first time wearing a cheongsam, the guests also had Han Geng and Angela An to help. Besides, there was also a famous master Wang Liguang escort on the track, specially for her to take back the theme song "do not know if there is no thief" in Rene Liu's interpretation.

    主站蜘蛛池模板: 亚洲AV无码一区二区三区网站 | 国产成人黄色小说| 亚洲精品中文字幕无码AV| mm1313亚洲国产精品无码试看| 精品国产一区二区三区香蕉 | 黄页网址免费大全观看| 欧欧美18videosex性哦欧美美| 国产精品三级在线观看无码| 国产精品麻豆免费版| 亚洲综合久久精品无码色欲| 99热这里只/这里有精品| 色妞色视频一区二区三区四区| 日本香蕉一区二区三区| 国产精品免费综合一区视频| 亚洲国产精品成人久久久| 2018天天干夜夜操| 欧美人与物VIDEOS另类| 国产激情一区二区三区| 久草精品视频在线播放| 91华人在线视频| 欧美人与动牲交a欧美精品| 国产真实乱子伦xxxx仙踪| 久碰人澡人澡人澡人澡人视频| 麻豆一区二区99久久久久| 日日碰狠狠添天天爽无码| 嘟嘟嘟www免费高清在线中文 | sss欧美一区二区三区| 果冻传媒高清完整版在线观看| 国产成人久久久精品二区三区| 久久亚洲国产精品五月天婷| 美女扒开胸罩让男生吃乳 | 久久人搡人人玩人妻精品首页| 老熟女五十路乱子交尾中出一区| 少妇挑战三个黑人惨叫4p国语| 伊人久久久大香线蕉综合直播| 777丰满影院| 日韩精品视频观看| 国产一区二区三精品久久久无广告 | 精品爆乳一区二区三区无码av | 国产在线视频一区二区三区| 中文字幕色婷婷在线精品中|