> The US had no monetary policy for the first 100 years of its existence, going from subsistence farming to superpower
It was also rocked by regular financial panics during this period, including massive economic shocks when large gold and silver deposits were discovered that suddenly flooded the economy with new "money".
How much of such super power status was derived from Fed itself vs a system that was able to distribute and allocate resources more efficiency than the time before?
One could argue that the Fed (and other central banking institutions), compared to times before was that more efficient system, but idealistically, efficient systems are not bounded by the present situation, just temporarily constrained by such. And as people like Bill Gross (who cofounded PIMPCO) are starting to publicly state in some form another, is loosing its effectiveness when it comes to managing resource allocation beyond the state we are at. There are a whole host of human endeavors that are not undertaken (think infrastructure investments) because its more profitable in the short term for large institutions to use their near zero interest credit lines on financial markets, but in the long term are blinded to opportunities that can only come from more efficiency in sectors like energy/mining/transportation.
i never made that claim. not sure why all of a sudden you're changing the subject. I was simply responding to the claim of " The US had no monetary policy for the first 100 years of its existence, going from subsistence farming to superpower. "
Quoting from the article: "At some point investors – leery and indeed weary of receiving negative or near zero returns on their money, may at the margin desert the standard financial complex, for higher returning or better yet, less risky alternatives."
fwiw, gold doesn't have an economic policy either.
But the difference is that with fiat, "no policy" means they'll do whatever they want in the future. With cryptocurrency no policy is more like an unbreakable policy of no tampering.
