For those of you who thought the Bank for International Settlements was replaced by the World Bank and/or the IMF, think again. It’s alive and well in Basel, Switzerland (where it’s always been – nice place if you can afford to live there), and publishing working papers in which Austrian theory is cited – by name – as an argument against inflation targeting by central banks. The Austrian argument against central banks themselves is not noted, however.
This paper was announced and described in the current issue of The Economist, complete with its recommendation of Austrian theory (which the Economist helpfully described as having dominated “between the wars”). Since the Economist article requires a subscription, I’ve linked the paper itself, which is accessible to the public. For those with Economist subscriptions, the article should be easy to find.
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Whoops.
“Some combination of technological change and deregulation has led to a quickening process of disintermediation from banks, growing reliance on market processes, globalisation and institutional consolidation.”
IMHO, this sums up why BIS may suddenly be getting Austrian religion. Translation: “our greedy ways of printing up money to siphon off unlimited profit for ourselves aren’t going to work anymore in the information age because people can bypass us. We had better become serious about honest money or we will become irrelavent.”
Well I agree, but this is sure going to infuriate the powers that be. Stand by for a battle of the titians.
It’s evident that Mr. Rockwell Jr. is just another Bush basher. Another armchair quarterback. The asumption is silly.
You can’t wait for market forces to work when you have a bunch of radical Moslems bent on killing your people with the air planes. Our President made the correct decision to protect the citizens and even the carping armchair quarterbacks.
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