Background Image
The central banks cannot control interest rates. that's a mistake. they can control a particular rate, such as the federal funds rate, if they want to, but they can't control interest rates.
-Milton Friedman
Please Wait....
Translating....

The Central Banks Cannot Control Interest Rates.

Milton Friedman
The central banks cannot control interest rates. that's a mistake. they can control a particular rate, such as the federal funds rate, if they want to, but they can't control interest rates.
Views: 3
Cite this Page
Prevent plagiarism by providing proper attribution.
APA FORMAT
Embed this Quote
Copy this HTML code to embed the quote on your website or blog.
HTML CODE
Topic
Mistake Want Interest

More From Milton Friedman

What central banks can control is a base and one way they can control the base is via manipulating a particular interest rate, such as a federal funds rate, the overnight rate at which banks lend to one another. but they use that control to control what happens to the quantity of money. there is no disagreement.
Way Use Interest
The lesson for asia is; if you have a central bank, have a floating exchange rate; if you want to have a fixed exchange rate, abolish your central bank and adopt a currency board instead. either extreme; a fixed exchange rate through a currency board, but no central bank, or a central bank plus truly floating exchange rates; either of those is a tenable arrangement. but a pegged exchange rate with a central bank is a recipe for trouble.
Recipes Want Asia
It does not stand to give banks millions of dollars at an interest rate of one percent, when banks charge students an interest rate of 6 percent. why should the banks be scalping students?
Giving Doe Dollars
The proposed constitution, therefore, even when tested by the rules laid down by its antagonists, is, in strictness, neither a national nor a federal constitution; but a composition of both. in its foundation it is federal, not national; in the sources from which the ordinary powers of the government are drawn, it is partly federal, and partly national; in the operation of these powers, it is national, not federal; in the extent of them again, it is federal, not national; and finally, in the authoritative mode of introducing amendments, it is neither wholly federal, nor wholly national.
Government Foundation Ordinary
There's only one thing that all of the central banks control and that is the base, their own liability, and they can control that in various ways. they can control it directly by open market operations, buying and selling government securities or other assets, for example, buying and selling gold, or they can control it indirectly by altering the rate at which banks lend to one another.
Government Gold Way
Even fans of actively managed funds often concede that most other investors would be better off in index funds. but buoyed by abundant self-confidence, these folks aren't about to give up on actively managed funds themselves. a tad delusional? i think so. picking the best-performing funds is 'like trying to predict the dice before you roll them down the craps table,' says an investment adviser in boca raton, fl. 'i can't do it. the public can't do it.'
Giving Up Self Confidence Thinking
Similar Quotes
Even as we do all that's necessary to ensure israel's security, even as we are clear-eyed about the difficult challenges before us, and even as we pledge to stand by israel through whatever tough days lie ahead, i hope we do not give up on that vision of peace. for if history teaches us anything, if the story of israel teaches us anything, it is that with courage and resolve, progress is possible. peace is possible.
Giving Up Lying Israel
I am not more gifted than anybody else. i am just more curious than the average person and i will not give up a problem until i have found the proper solution.
Giving Up Average Problem
Freedom and democracy are dreams you never give up.
Dream Giving Up Democracy
Good books don't give up all their secrets at once.
Inspirational Giving Up Book

Trending Author

Julie Delpy
Julie Delpy
Elisabetta Canalis
Elisabetta Canalis
Sean Durkin
Sean Durkin
Nicole Scherzinger
Nicole Scherzinger
Gian Carlo Menotti
Gian Carlo Menotti
John Dryden
John Dryden
Category
Information
Inspirational
Philosophy
Personal Growth
Happiness & Joy
Life Lessons
Success & Business
Motivation