Is There a Need for an Independent Central Bank?

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An independent central bank whose job it will be to prevent the printing of money would not pass. Even though experts in Argentina know for a fact it would be better for the society if they wouldn't do it, he says. "It's clear that the Federal Reserve actually is very conscious of the activities of the House Ways and Means Committee"

Economist and political scientist Michael Munger of Duke University talks about industrial policy with EconTalk host Russ Roberts. Munger argues that in a democracy, the default outcome for industrial policy is crony capitalism--attempts to improve on that outcome either by appointing experts or eliminating cronyism are going to fail for political reasons. The conversation concludes with a discussion of the reliability of Munger's claim and what options are left for dissatisfied reformers.