Simply put, the term 'Monetary Policy' doesn't truly exist; it's just another way to refer to the production and management of a nation's money supply and interest rates.
Money ain't complex, folks, it's just production laced with an agreement about value. In layman's terms, when something gets produced, money flows, simple as that. Politics surrounding money? Nah, production's the policy here. Money's circulation is as chaotic as the market itself, reflecting the goods, services, and labor being traded.
Production is the be-all and end-all for money, remember that – without production, money serves no purpose, and-poof!- it disappears. So, should politicians control what some call "money supply"? No, but let's not kid ourselves; it's a pipe dream that non-politicians can pull off what politicians can't. Central planning? It's a bust, always and everywhere.
Now, some smarty-pants economists imagine governing "money supply" like it's their personal playground. But here's the kicker – just like the market genius they drool over, they fancy themselves as planners, too. These folks can be found scribbling rejected advice at universities, think tanks, and central banks worldwide. A word of advice: Overestimating your own genius is an easy trap to fall into.
They keep blabbering about how "monetary policy" is supposed to be in the hands of these academic economists inside the government, yet they overlook the irony in claiming a "market monetary" title. These folks are stuck in a dream world, picturing neat little graphs and mathematical equations that would grant them the power to finely tune the economy based on their fancy grad school theories.
Reality, though? It keeps reminding us that their "plans" don't work. Market realities, that is – money's where production is, and it ain't where it ain't. And here's the kicker: Producers, not some fancy PhDs with their heads buried in economics textbooks, decide the money that circulates based on a straightforward desire to receive roughly equal value for the things they offer. Producers, my friends, are the de-facto "monetary policy."
Central planning? Forget it. Politicians may dream of controlling the money supply, but their efforts usually result in their plans evaporating from circulation. Currencies like dollars, euros, yen, pounds, and Swiss francs? You can find them in places where they're far from local currency, and usually not legal tender. Yet, despite the imperfections, these global currencies circulate wherever production demands. Voilà, the power of production in full swing, y'all.
In conclusion, the idea of politicians dictating the "money supply" is a moot point. Central planning? It never wins, whether it's the job of politicians or economists.
John Tamny, Dominic Pino, and many other economists at institutes worldwide argue that monetary policy and monetarism should not be controlled by politicians, but by the principles of production and market forces. They agree that the circulation of money, whether it's dollars, euros, yen, pound sterling, or Swiss francs, is determined by producers and their desire for roughly equal value in return for their goods, services, and labor. Furthermore, placing too much control in the hands of economists or politicians can lead to devastating consequences, as seen when their plans fail to align with market realities.
