More Central Bank Independence?
About this episode
Phil Dobbie and Steve Keen discuss the implications of greater central bank independence as proposed by Bank of England Governor Andrew Bailey.
In this episode, Phil Dobbie and Steve Keen dissect Bank of England Governor Andrew Bailey’s push for greater central bank independence, a move Bailey claims is necessary to shield price stability from politically motivated meddling. Steve Keen, however, isn't buying the mainstream narrative, arguing that central banks are operating on a "fantasy" model that ignores the actual mechanics of money creation and the volatile role of private debt. The discussion ranges from the "policy ineffectiveness" of interest rate hikes to the historic failures of central banks to act as anything more than a "Greenspan put" for a fragile banking system. Ultimately, they suggest that instead of doubling down on flawed independence, central banks should stop pretending they can micromanage GDP and start acting as a realistic police force for financial stability—before the next "unforeseen" crisis hits. Hosted on Acast. See acast.com/privacy for more information.
People in this episode
Hosts: Phil Dobbie, Steve Keen
Topics covered
- central bank independence
- price stability
- money creation
- private debt
- financial stability
- interest rates
Keywords
- central banks
- Andrew Bailey
- Bank of England
- interest rates
- financial stability
- private debt
- policy ineffectiveness
Mentioned in this episode
Organizations: Bank of England
More episodes of Debunking Economics - the podcast
- Energy - the AI Achille's Heel
- The looming diesel disaster
- Understanding the Value of Value
- Compound Growth in a Finite World
- Paying a war
- Beyond the Barrel: Should We Windfall Tax Big Tech and Banks?
Explore listener stats, chart rankings, contacts and more on the Debunking Economics - the podcast podcast page.