Dallas News - Although it's been a few days since the U.S. Federal Reserve announced it plans to tighten monetary policy and shrink its balance sheet, the financial press remains flooded with speculation about how the central bank's actions will affect the economy.
But when money is governed by the arbitrary rule of central bankers, things become much more uncertain. Trade slows. The economy stagnates, jobs are hard to come by, and the gains from trade mostly accrue to politically connected financial elites. The Fed bears no small responsibility for the past 10 years of anemic economic performance.
As long as the Fed remains unaccountable, we are unlikely to see things improve. The Fed's behavior must be brought under the rule of law, both for the sake of commercial prosperity and for the sake of the legitimating principles of the United States itself.
Alexander William Salter is an assistant professor of business at Texas Tech University and the Comparative Economics Research Fellow at TTU's Free Market Institute. Email: email@example.com