Randomized monetary policy

Felix Salmon writes:

One alternative approach would be to consider it to be the job of the Fed to minimize the severity of the worst possible
recession. What would happen if, for instance, rates were set using a
random-number generator? Every FOMC meeting, some kind of virtual die
would be rolled, moving rates up or down even if that was the opposite
of “correct” monetary policy. The resulting uncertainty would force
people to take a more defensive stance at all times, just in case rates
went sharply upwards – even if the probability of such a rate hike was
quite low.

Some Austrian wise guys out there might claim this is what we had for a while or maybe they think it is what we have now.  Alternatively, if returns on gold are a random walk, does not a commodity standard give you a version of this, if only for medium-term changes in the price level?  Random taxation of risky investments could produce comparable results.


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