It's called Order out of Chaos... by this, I mean, first define what you want, then call it the solution. Then think of a problem, who will need your solution... Finally artificially create the problem... Now you are the savior
Well, I am in the staunch pro-CB camp. If there's anything that the crisis has taught us, it is that we still don't know how to deal with the fundamental problem of any capitalist economy, specifically, the provision of public goods. I am not saying that the Fed is THE solution, as I think there's a few CBs with a better record out there. However, the institution is necessary, in my view, even though its current design may have flaws.
easy, it's called the russian paradigm... The indivual actions of free indiviual will always lead to a better results... fairer, efficienter, nicer... So how could a very smart group of people, outsmart the all community ? They will always be to slow, or to fast in raising or lowering, secondly by the incertitude their actions create in the market place they lower the efficiency of the system...
Marting... cynics like me define your phrase above as: "We need a Central Bank to better strip wealth from the productive members of the economy, and to concentrate wealth in the hands of the elite few."
Suppose we were to say however that a CB is more or less necessary ... what kind of model do you think is most likely to produce desired results? Under what criteria should it be judged??