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by eru 1198 days ago
> The central bank is overall unregulated because the central bank IS the regulator.

Even regulators are regulated. There are laws that prescribe what the Fed can and can not do, and how.

> Additionally given how the US dollar is sort of the central peg of all other currencies, the US would rather the Dollar remain the Rate at which all other currencies are set against. That way the US in a way indirectly and collectively controls the worlds monetary value.

Yes, if you wanted to do a similar system for the USD, you would probably want to peg a basket of commodities instead of the exchange rate.

Or you could have the Fed target the TIPS spread directly: https://fred.stlouisfed.org/series/T10YIE
2 comments
TexanFeller 1197 days ago
> Even regulators are regulated

Ron Paul campaigned for "auditing the Fed" perhaps more than he campaigned for president. Was he exaggerating, or does Congress not actually audit and otherwise oversee the Fed?

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eru 1197 days ago
The Fed gets regular audits as far as I can tell. But perhaps Ron Paul was campaigning for more thorough ones? (Or it was just a good sound bite?)

https://www.econlib.org/archives/2009/07/audit_the_fed_o.htm... and https://www.csmonitor.com/Commentary/Opinion/2009/0803/p09s0... might be interesting.

You might also like https://www.alt-m.org/2020/03/30/when-the-fed-tried-to-save-...

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kilgnad 1198 days ago
>Even regulators are regulated. There are laws that prescribe what the Fed can and can not do, and how.

I mean sure, you can say that. The US government is regulated too. But in general the government IS the regulator of the people just as the central bank IS the regulator of monetary policy.

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