[GavinMcG]

I think the article would argue you're making the mistake it criticizes: you're ignoring the role of regulation.

> If a central monetary agency can go about unconventional monetary policy such as purchasing equities...

If that's a problem, prohibit it.

[JanisL]

I'm not sure why you'd take from this that I'm ignoring the role of regulation when I'm commenting on a situation whereby the regulatory framework of central banks allows them to take actions that damage the signaling power of pricing. I most definitely think that banks and central banks must be carefully regulated because they have the special privilege of creating money and with this comes a lot of responsibility.

The other part though is that if money is corrupted it impacts the process of regulation itself. For example creating good regulation to tax companies is made far more difficult when there's fundamental differences between the nature of the money that those companies themselves have access to. I'm sure it would be possible with a large amount of effort to have regulations with non-fungible money but there's challenges there that would be substantially difficult to address and the complexity of that regulation would come with it's own non-zero costs to society.

[sam0x17]

In simpler terms, for any complaint you come up with, here's a regulation to fix it. Problem solved.

If the problem is a regulation, let's remove or modify that regulation. Problem solved.

If your problem is there are too many regulations, let's get rid of 20 of them and simplify down to just this one. Problem solved.

Oh, that simplification created its own problems? Let's create new regulations covering those three scenarios. Problem solved.

But if we are much slower at creating regulations than we are at creating new situations that require regulation, it creates the perception that regulations don't work, which leads to rapid de-regulation of everything. Our current legal and political framework simply wasn't designed for this. It was designed for 13 small colonies writing paper letters back and forth, where waiting 3 months for a court to make a decision or 1+ years for congress to pass a bill was considered quite timely and fine. We now live in a society where there is probably a need for 2-3 new regulations per day, and 1-2 adjustments to existing regulations, per day, and an AI chat bot that will tell you whether something is legal based on current regulations.