Re: Central Bank independence
The problem with allowing monetary policy to be controlled by congress is that our congress is extremely short sided by nature. Congress members by necessity must do what is going to get them reelected or they will be ousted and replaced by someone who will. The American public, quite frankly, is not well enough informed to want what is in their own long term best interest. They simply do not understand the complexity and repercussions of government actions. This all leads to a sort of natural selection of congress people where those who are short sided survive.
This is a problem because often there is a trade off between short term and long term goods. For example, in order to reduce unemployment in the short run we must endure inflation in the long run. When the congress controlled monetary policy they always chose to pursue the short term gain, reduced unemployment, to get reelected Unfortunately this caused our country to suffer from out of control inflation until congress delegated the responsibility of monetary policy to an independent central bank, the Federal Reserve.
Central bank independence is essential to the stability of the US economy as well as the credibility and subsequently the value of the dollar. Monetary policy is better left to economists. (of course this is coming from a student in the field)
"The beginning of wisdom is found in doubting; by doubting we come to the question, and by seeking we may come upon the truth."