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Editor's note: Originally published at tsi-blog.com on December 2, 2019.
[This blog post is a modified excerpt from a TSI commentary.]
In one important respect, the average central banker is like the average politician. They both tend to focus on the direct and/or short-term effects and ignore the indirect and/or long-term effects of policies. In the case of the politician, this is understandable, if not excusable. After all, the overriding concern of the average politician is winning the next election. The desire to be popular also influences the decisions of central bankers, but there is