Friday, September 4, 2009

Who controls the global economy ??

Well, it's a good headline, but no one controls the economy: US or global. The global economy is simply to complicated. The economy is the result of the dynamic interplay of consumer, business, social and political forces. It is well beyond the control of one person, organization or government. In addition, the economy, give a stable regulatory environment, is somewhat self correcting. It tends toward a long run equilibrium meaning a lot short run problems and news are temporary.

Now, whether the US or global economic system is fair, is another point all together.

However, if you want to see the thinking of the group comes about as close to controlling the economy as you can, check out the notes from Federal Reserve System's Open Market Committee (FOMC). Here. This is the committee that raises and lowers the interest rates.

It is somewhat funny, because they talk in a lot of qualified language (because they basically don't know either). But they definitely know a lot more than the average person(me).

No comments:

Blog Archive