Article Review #8: Golden Age of the Central Banker

This article talked about how the "Golden Age of the Central Banker" has turned into the "Silver Age of the Central Banker" because the structure has changed. Investors used to be able to affect monetary policy, but the power has shifted from the investors to the domestic politics of nations. The article argues that this is all because of massive global debt. The writer argues that the value of US exports isn't going through the process of ups and downs. The value is going down, but the volume is staying the same. The article also talked about how the value of exports is measured in the country's respective currency, so even if the currency depreciates, the the value of the exports doesn't change much because it's not measured against other currencies. However, the writer also says that depreciating currency is the best method to keeping factories running. Some analysts even use the depreciation of currency to show more positive results. When analyzing politics, economists tend to see the national government as a corporation, which leads to some crucial errors while calculating economic activity. Governments want, first of all, to keep factories running - no matter the economic expense - and accomplish this by purposely depreciating currency. Meanwhile, this domestic focus is causing chaos internationally as countries quickly try to export in an attempt to cover gaps in their own economies. These countries rely on the lack of international cooperation to reach a Nash equilibrium that saves them at the expense of greater productivity. This political strategy manipulates everything from commodity prices to exchange rates to global trade volumes.