QOTD: “”I have a dream. It involves a Star Trek chair and a bank of monitors.”

Bank of England Chief Economist Andy Haldane:

“I have a dream. It involves a Star Trek chair and a bank of monitors. It would involve tracking the global flow of funds in close to real time, in much the same way as happens with global weather systems.”

Is the binding constraint on better macroprudential policy a lack of timely information? If they had that information, could a world regulator really have averted the crisis in 2007?

Full speech here.

2 replies
  1. Jim Rose
    Jim Rose says:

    I now know why Milton Friedman wanted to replace the Fed with a computer than would administer a monetary base with zero rate of growth

  2. Phillip Gold
    Phillip Gold says:

    The miss-valuation of money happened LONG before 2007. As soon as money is miss-valued, those who have an idea of its true value use this information against the stickiness of others, creating a chain of bad financial decisions, poorly directed capital and wealthy weasels. By the time these bad and miss-informed decisions have been made, it’s too late for the central bank; central banks are designed to avoid miss-informed financial decisions through proper valuation, not to rectify them. The only cure is a crash … or a time machine.

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