We have to stop quoting Walter Badget on what a central bank does--so far from the reality of what the central bank is doing today that it raises a question about the very name central bank.
It's only touched upon lightly in the G30 report, but it is evident that in the U.S. the central bank is taking on a role that is way beyond any traditional conception of what a central bank should be doing.
What Turkey has is a central bank that has brought it to the abyss with a disastrous move to float the lira, resulting in a harmful devaluation that has destroyed banks and businesses.
There is usually an enormous lag between what a central bank does and the impact of its actions on the marketplace.
Sensing a possibility of additional Federal Reserve action next week 150, 000 is a weak number no matter what, and the central bank still needs to pump the economy basic material stocks moved here.
What is providing a breathing space was the decision by the European Central Bank to lend half a trillion euros to Europe's banks at a rate of just 1% over three years.
What the central bank is doing is the equivalent of a doctor's undermining a patient's health because he believes it is unhealthy for people to be healthy for too long a period of time.
The annual rate of consumer-price inflation was at 2.8% in November, which is in line with what the Polish central bank calls "a conventional policy" of keeping the cost of money above the level of inflation.
The good burghers of restoration England, then, understood what many modern politicians do not, or purport not to: a central bank is part of the state.
Until yesterday that is, when cracks appeared in what had been a previously monolithic block of unanimity within the central bank.
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The government is allowing offshore markets to trade the yuan at a level much stronger than what the Central Bank sets it at.
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What needs to happen, if Greece is to remain in the eurozone in the longer term - they say - is for eurozone governments and the European Central Bank to write off a big slug of what they are owed.
Apparently the leaders of the Eurozone are not ready to do what is nececcessary to keep the Euro together, and as long as the ECB does not function as a true central bank dictating monetry policy, but it is left at the hands of politicians and the politics of re-election, there is no salvation for the single currency.
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The Bank of Japan (BoJ) is joining others in what could be dubbed a new era for central banks, as ailing economies and massive debt loads have eroded the barrier of independence and essentially pushed monetary policymakers into trying to spark growth via stimulus, as the debate on the effectiveness of those policies ranges on.
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