Friday, October 30, 2015

One Net, One Future & The Wrong War for Central Banking

Below are links to a couple of interesting articles appearing recently on Project Syndicate. Below each link is a brief quote from the article. Former Swedish Foreign Minister Carl Bildt talks about potential threats to the internet in the future and Stephen Roach says Central Banks are too focused on inflation targets.


One Net, One Future by Carl Bildt

"Once upon a time, two superpowers, the United States and the Soviet Union, held summits to reduce the danger of a nuclear war. Today, the summitry is between the US and China, a large part of which is to reduce the dangers of confrontation and conflict in cyberspace.

The stakes could not be higher. How the world responds to the threat of cyber attacks will determine the extent to which future generations will be able to benefit from the digital era. In addition to the possibility of conflict, there is the danger that governments will overreact, erecting barriers to information that undermine the potential of the Internet."

"Fixated on inflation targeting in a world without inflation, central banks have lost their way. With benchmark interest rates stuck at the dreaded zero bound, monetary policy has been transformed from an agent of price stability into an engine of financial instability. A new approach is desperately needed."

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