I got this in my mail box earlier in the week (the author will remain anonymous):
“Central bank governors are like the Pope. They must preserve the survival of the institution. The necessary legitimacy comes from infallibility. The church through the Pope because he speaks for God always speaks the truth. The incompatibility of legitimacy and admission of error means that every statement and action must presume the validity of past statements and actions. If central banks do commit error, there is no going back, only the compounding of the error. ”
That reminded me of my earlier post on “Central bank rituals and legitimacy”.
PS Later today I will be doing a presentation on Milton Friedman at the Danish free market think tank CEPOS in celebration of the re-publication of the Danish version of “Free to Choose” (“Det Frie Valg”). The presentation is at 1700 Danish time. See here. I have the preface for the book. See here.