Tomorrow marks a significant milestone in the history of the Federal Reserve, as Chairman Ben Bernanke prepares to break nearly a century of silence with the central bank’s inaugural press conference. This moment promises to be particularly noteworthy.
Here at the Economic Prism, we’re tuning in with eager anticipation, hoping for a performance reminiscent of a night at the Laugh Factory. Our true interest lies not just in the responses Bernanke offers, but more so in the questions posed to him.
While it’s likely that most inquiries will revolve around the usual topics—such as the federal funds rate, inflation expectations, and the conclusion of quantitative easing—we hold out hope that someone will unexpectedly raise a more provocative question. Imagine something like, “What is your perspective on John Law?”
Among the various careers one might pursue, working as a central banker in a paper money system is perhaps one of the more deceptive. In our modern age, where technology is ever-evolving and lifestyles are becoming more complex, the practice of central banking appears just as absurd as when it first began.
Despite all the bravado about inflation targeting, liquidity traps, and the scientific management of economies, at its core, central banking can often feel akin to the antics of carnival magicians. Continue reading