☕ George Melloan reviews Who Needs The Fed? by John Tamny for the Wall Street Journal.
The bank’s efforts to control the price and allocation of credit are increasingly distortive and making the Fed irrelevant to credit markets.
“Who Needs the Fed?” is studded with pointed aphorisms and remedial precepts. On the economy: “It’s not capitalism if there’s not a lot of failure.” On attracting immigrants: “The most powerful market signal of all—and nothing else comes close—concerns where people choose to live.” On Keynesian assumptions: “Government need never implement policies designed to encourage spending. As individuals, we’re wired to demand things and our wants are unlimited.” And: “Governments can only supply credit (access to real economic resources) that they’ve extracted from the real economy first. This is the opposite of stimulative.”