Change is inevitable and one who can't cope up with the changed eco system, will have to be extinct. So it may be true that if a particular statistical model worked in past, may not be fruitful in the present or future. Initially a Central Bank used to control the money flow in to economy but with the presence of crypto currency, a lot of uncounted money gets pumped in to the economy. A lot of people are earning well without having a job or a business. Their purchasing power is increasing and money is getting pumped in to the economy. So if the interest rate had worked well to control the money flow in past, may not get you desired result in future.
However, I don't think we need any new system other than the Central Bank as of now because they are the backbone of a country's economy and policy. It may become a challenge in future for a Central Bank to use the age old method and they will have to think of new policies and tools to control the economy, but the current system is functioning well and need not to be changed.
Topic: A Crisis in Central Banking: Will It Soon Explode? - page 3. (Read 1636 times)
Bitcoin is now more competition in the traditional banking system. But his distribution and capitalization is too small to be a threat to banks. I am sure that it will be a problem in the future. Bitcoin does not stimulate the state's economy. Without a functioning economy, not the state. It is a conflict of interest. If it does not resolve then the state will be forced to declare war on bitcoin.
Central banks are playing the most important role in a country's economy and I don't have to detail here why this is so. It is considered as the official watcher of the whole economy and its policies and even small pronouncents can affect us all ordinary mortals.
However, in many parts of the globe, experts are noticing real crisis of confidence in central banking most especially on what the future holds and how the system can be able to cope with the possible changes brought on by trends happening right now.
Closing closely on the matter, experts are seeing that the the economic models which worked in the past are now showing some signs of failures leading to doubts as to whether they still fully understand the effects of interest rates as the most popular tool in controlling the economy and other monetary policies affecting the people.
Can it be said that right now we need a better platform in place of central banks, which can be more adept and truly reflective of the problems which ordinary people encounter in real life?
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