24 Mart 2015 Salı

Jeremy Clarkson and Central Banking

TopGear is one of the BBC's top export franchises. Its successful format involves three grown men talking about cars and engaging in college-like antics with cars. Jeremy Clarkson, the lead presenter, is brilliant at his job, but he is often a controversial character. Recently he was suspended by the BBC for punching a producer - story here

The Mumbling and Stumbling Blog has a fantastic post which compares central banking and Jeremy Clarkson - click here. The key issue for central banks is whether they should obey rules or be given discretion. This is also the key issue for Jeremy Clarkson - should he be given discretion to punch people or a rule 'don't punch people'? If it is the latter, Stumbling and Mumbling point out that he would have never have hit Piers Morgan, which would be a sub-optimal outcome! Rules for central banks can also produce sub-optimal outcomes.

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