Central bank envy

posted by
February 16, 2011
Adam Smith Institute
by Sam Bowman  
Posted in Commentary

"Philip Stephens had a piece in yesterday’s FT arguing that Britain might be better off had it joined the euro, contrary to what most people believe. I’m no fan of the euro, and I’m not sorry Britain stayed out, but I think he has a point. The idea that Britain dodged a bullet by staying out, I think, is wrong. Central banks, by their nature, lack the knowledge to be able to set interest rates capably, and it’s a mistake to think that one or another would be ‘better,' except in hindsight." (02/16/11)



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