Arthur Burns “The Anguish of Central Banking”

Contrary to the belief of most central bankers, there is no definitive model that works: “monetary theory . . . does not provide central bankers with decision rules that are at once firm and dependable”, as Burns put it. We might know that “excessive creation of money” will cause inflation, for example, but this knowledge “stops short of mathematical precision”. The result? Surprises and mistakes at “every stage of the process of making monetary policy”.

In the audience in Belgrade sat Paul Volcker

A few years later Volcker gave a talk titled “The Triumph of Central Banking?” No wonder today’s central bankers all want history to remember them as a Volcker not a Burns. But note the question mark in his title. 

Merryn Somerset Webb FT 23 September 2022

https://www.ft.com/content/ac786b9e-be5a-4b8a-87b0-bc020a28f5c5

The writer is editor-in-chief of Money Week

Powell Burns Volcker

https://englundmacro.blogspot.com/2022/06/powell-burns-volcker.html

If you have only been in markets for, say, 15 years, you are seeing the collapse of everything that you have been told is true and have also observed to be true about markets.

Merryn Somerset Webb FT 20 May 2022

https://englundmacro.blogspot.com/2022/05/dont-count-on-fed-to-ride-to-rescue-of.html