What is the best system to replace the Fed?

[orrery]

Public confidence in Bernanke is at all-time low.
The dollar is plummeting in value and prices are at all time highs.
After exporting jobs overseas while promising better jobs here at home, its become evident that it was merely another campaign promise the Washington has been unable to fulfill. The Chinese economy is booming. Countries are taking out their investment in the dollar and the political landscape has become filled with candidates clamoring over themselves to show their economic aptitude by supporting measures to Audit and End the Fed.

 

[Godwynn]

Don't change it, keep the Fed.

 

[mangxema]

Commerce was a mess pre-Fed.

 

[orrery]

Commerce was a mess pre-Fed.

It still is.

 

[Bill3000]

The Fed should be replaced with the Fed.

 

[emzie]

I suggest a central banking system that regulates the nation's monetary system, regulates banks, provides insurance on deposits, has a vaguely-defined roll to protect the stability of the economy.

 

[civver_764]

Within the foreseeable future? Some sort of democratically controlled central banking system.

 

[orrery]

I propose the Fed be replaced with a Public Bank instead of a Private Bank then. Current banking system is unacceptable.

 

[emzie]

Within the foreseeable future? Some sort of democratically controlled central banking system.

Because if there's one thing the population knows well enough to warrant active input upon, it's national fiscal policy.

 

[civver_764]

Because if there's one thing the population knows well enough to warrant active input upon, it's national fiscal policy.

Because experts would suddenly stop existing and the public would have no advice at all, amirite?

 

[JollyRoger]

The unfed.

 

[Joecoolyo]

Who said the public was listen to those experts?

The public would most likely end up listing to the "experts".

EDIT: x-post

 

[civver_764]

"Experts" being?

The point is to make the system so that there is as little possibility of personal gain from it as possible. This will help remove corruption and bad policy decisions. Also democracy is a good principle in general.

 

[Integral]

Replace the Fed with a Fed that targets nominal income.

Voted "a basket of goods". The basket I have in mind is Y, with price weights. So...target PY.

 

[emzie]

Because experts would suddenly stop existing and the public would have no advice at all, amirite?

Well, if all that's needed is an active, engaged public that is closely following national debates on monetary policy, why don't we start that now?

 

[Theige]

Public confidence in Bernanke is at all-time low.
The dollar is plummeting in value and prices are at all time highs.
After exporting jobs overseas while promising better jobs here at home, its become evident that it was merely another campaign promise the Washington has been unable to fulfill. The Chinese economy is booming. Countries are taking out their investment in the dollar and the political landscape has become filled with candidates clamoring over themselves to show their economic aptitude by supporting measures to Audit and End the Fed.

Wrong.
Wrong.
Wrong.
Eh, not really.

 

[civver_764]

Well, if all that's needed is an active, engaged public that is closely following national debates on monetary policy, why don't we start that now?

Because the current people in charge of the fed a) have no right to be so, b) are not genuine, and c) have no incentive to listen to this hypothetical national debate.

 

[ecuwins]

Why can't the FED be controlled by Congress? Would that make matters worse?

 

[Arwon]

It seems strange that this is an issue. Why are some Americans so weird about their central bank?

Is this another of those ecxeptionalism things, or doesn't it work the same as normal countries' central banks?

 

[Elliot]

Why can't the FED be controlled by Congress? Would that make matters worse?

Congress could rewrite the laws and take more control over the FED if it wanted too. That would probably lead to higher inflation or a more volatile monetary policy. There's a paper somebody wrote who I can't remember and don't care to find that found a positive relationship between central bank independence(less legislature or executive control = more independence) and inflation rates. I don't think they found a difference in unemployment rates too.