Do countries without a central bank have less economic depressions? ?
- OiyLv 62 months ago
The exchange equation was the first to explain that not the government is bad, but the central bank as well. The change in money supply created by the central bank through the monetary policy has created bubbles which will burst worldwide.Only if the central bank will raise the money supply regularly according to the growth of the economy, then it will have a chance to be successful. (Milton Friedman). Only the German Bundesbank can prove that. Every country has only one central bank. But most of the central banks are bad.
- ZirpLv 72 months ago
probably not, but err.. how many countries don't have one?
Recessions are inherent to capitalist market-economies, but deregulation, austerity and other rightwing policies speed up the process