Robert Pringle - Ten Year Retrospective

Robert Pringle has posted a series of articles on his blog he calls a "10 Year Retrospective". He discusses some lessons he feels we can learn from the last global financial crisis. Below are links to each of the three parts in the series with a brief excerpt from each part just below the link.

----------------------------------------------------------------------------------------------------------------

10 Year Retrospective - Lesson 1

"The financial crisis showed up the defects of monetary models. These in turn reflected a flawed idea of money. That is why central banks failed to anticipate the crisis and could not deal with it effectively when it arrived. That is the message of The Money Trap."

The lead-up to the crisis was marked by the near-universal adoption of inflation targeting. This became sacrosanct as the framework for monetary policy ( implicit in the case of the Federal Reserve). It became the nearest we had to a global monetary standard.  The first lessons of the crisis is that this model was deeply deceptive."         . . . .

10 Year Retrospective - Lesson 2

"A leading economist has predicted that central banks will  not remain independent much longer. His forecast was made  at  a Bank of England conference called to celebrate – yes – 20 years of independence. Guests included Mrs Theresa May, the Prime Minster. It was opened by the Governor, Mark Carney, who drew a different, but equally startling, lesson from the crisis."    . . . .

10 Year Retrospective - Lesson 3

. . . .

"John Taylor (he of the Taylor Rule) advocates an international reform whereby each central bank would announce and agree to abide by its own rules for monetary policy – an international move to a rule-based system. He understands, as few others do, that a fatal flaw in QE has been its adverse international repercussions."   . . . .

--------------------------------------------------------------------------------------------------------------------------------

My added comments: I try to feature anything new that Robert Pringle posts to his blog (The Money Trap). He has years of experience in working with central bankers around the world and his insights are always valuable. They also provide a rare glimpse into the world of central banking as seen from the inside.