On Tue, Aug 13, 2013 at 12:08 PM, Carrol Cox <[email protected]> wrote:


> I would challenge the "therefore" of this claim. Moreover, just _because_ 
> central bankers are "more removed" from _electoral_ pressure they are _more_ 
> free than are presidents and congress to respond to pressure. Consider the 
> Supreme Court's decision on school segregation? It was _precisely_ the 
> Court's "independence" from voters that made that decision possible.

I think this is a good point, except that traditionally the Fed has
taken the banks as one of their main constituencies, if not the main
one.  It's in its institutional "hardware."  However, traditions can
be challenged when there's sufficient political motion -- and (as
computer people would put it) "software" tricks can circumvent
"hardware" limitations.  In fact, although at a rather tiny scale, the
QEs and twists by Bernanke's Fed can be viewed as tepid attempts to
preempt and/or accommodate popular pressure, active or latent.
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