The Fed’s Fundamental Problem
The Fed’s Fundamental Problem
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Inflation was running rampant for months before the Federal Reserve launched its inflation fight. As you’ll recall, we were told over and over again that inflation was transitory. But now that the central bank is on the job, most people are confident Powell and Company can get rising prices back under control. Perhaps they shouldn’t be so confident.
The Federal Reserve faces the same problem that all central planners must confront. Economist Friedrich Hayek called it “the knowledge problem.”
In his seminal paper, “The Use of Knowledge in Society,” Hayek concluded that central planning will always fail because it is...
Source: https://www.newswars.com/the-feds-fundamental-problem/
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