Contemporary Monetary Institutions are flawed at a foundational level.
Furthermore, central bank discretion implicitly violates the basic jurisprudential norms of liberal democracy..
But no matter how smart or well-intentioned are central bankers, discretionary policy contains information and incentive problems that make macroeconomic stability systematically unlikely.
The reigning paradigm in Monetary policy holds up constrained discretion as the preferred operating framework for central banks.
Contemporary Monetary Institutions are flawed at a foundational level