"But when the BIS (Bank
for International Settlements) writes that: "Central
banks cannot repair the balance sheets of households and financial
institutions. Central banks cannot ensure the sustainability of fiscal
finances. And, most of all, central banks cannot enact the structural economic
and financial reforms needed to return economies to the real growth paths
authorities and their publics both want and expect."
Doesn't that seem fair enough? Central banks can buy time for economies, they can resolve liquidity crises, but they are not the most crucial factor in determining long-term growth rates. Those are determined by the make-up and skills of the population, the endowment of natural resources and the society's institutions - rule of law, property rights etc."
Doesn't that seem fair enough? Central banks can buy time for economies, they can resolve liquidity crises, but they are not the most crucial factor in determining long-term growth rates. Those are determined by the make-up and skills of the population, the endowment of natural resources and the society's institutions - rule of law, property rights etc."
