By Aaron Task It’s often said that “generals are always preparing to fight the last war.”
In other words, people in charge often spend so much time fixated on how they could have prevented past problems that they fail to prepare for the future.
The most famous example is France’s Maginot Line, which was built in the 1930s to win another war of attrition like World War I. But the nearly 1,000-mile line of defensive fortifications was largely useless against Germany’s blitzkrieg attack in 1939.
What’s true for the military is also true for the Federal Reserve.
In the 1940s, ’50s and ’60s, central bankers were concerned …read more
