I think they Fed and the ECB are all just floundering. Not knowing what to do and hoping this crisis somehow passes and the citizens of the west do not notice how incompetent and corrupt these institutions have become. I'd like to think the Fed or ECB are making policy based on thoughtful analysis, but I find this doubtful given where we are. Simply put, these people have way too much impact on our economy given their track record.
Would ‘politics’ be the answer to this mystery? I know that the Fed is ‘supposed’ to be apolitical, but maybe in Europe there is even more pressure on the ECB to bend to political will. I don’t know. The financial markets don’t care much about political correctness, but maybe the ECB is pressured to make policy changes regardless of financial reality. What do you think, Mr. Kust?
I think they Fed and the ECB are all just floundering. Not knowing what to do and hoping this crisis somehow passes and the citizens of the west do not notice how incompetent and corrupt these institutions have become. I'd like to think the Fed or ECB are making policy based on thoughtful analysis, but I find this doubtful given where we are. Simply put, these people have way too much impact on our economy given their track record.
The degree they are floundering vs the degree they are just misguided is up in the air.
To the extent they are doing any thoughtful analysis they are using the wrong models and not giving enough weight to real world data.
But you are correct, their track record is horrendous, and their influence far too great given their studied incompetence.
Would ‘politics’ be the answer to this mystery? I know that the Fed is ‘supposed’ to be apolitical, but maybe in Europe there is even more pressure on the ECB to bend to political will. I don’t know. The financial markets don’t care much about political correctness, but maybe the ECB is pressured to make policy changes regardless of financial reality. What do you think, Mr. Kust?
Politics of one sort or another are definitely a factor. Exactly how political influences are at play are still something of a question.
A question, and probably a matter of opinion. There’s maybe a range of 10% to 95%, depending upon who you ask. Can’t quantify, so we’ll never know.
It's clear that the ECB is following a narrative, which inherently implies political influence.
The question is which political influences are pushing in which direction on either the Fed or the ECB