Comments for Monetary failures at http://www.adamsmith.org , comment 1 to 2 out of 2 comments http://www.adamsmith.org Thu, 20 Nov 2008 18:30:17 +0100 FeedCreator 1.7.3 http://www.adamsmith.org/blog/economics/monetary-failures-200804181236/#comment-54 Quote: The MPC should be given a broader remit Jenny's new job? - Steve Giess Sat, 19 Apr 2008 10:57:48 +0100 http://www.adamsmith.org/blog/economics/monetary-failures-200804181236/#comment-51 I'm no economist, but I've never understood why it's considered desirable to control interest rates directly. Governments attempt to control the 'price' of borrowing by adjusting interest rates, but that 'price' depends ultimately on the supply of money - and that, surely, is what should be controlled. If a government attempts separately to control interest rates and money supply, it's likely to be attempting the impossible, and will cause other, undesirable effects as a result. So why not let interest rates be determined by the market alone? Let them float, and control the money supply instead? Perhaps the ASI could address and explain this issue sometime? - David Brand Fri, 18 Apr 2008 11:50:20 +0100