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Top four myths of central banks

Giving the Federal Reseve the power to set interest rates gives us all a false sense of control over our economic destinies. Thus, if rates are high, we assume that the Fed can lower them by edict and if rates are too low, it can raise it by dictate.

IN a Sept 4 blog post, New York University finance professor Aswath Damodaran argues that the Fed's influence is overrated. The following is an edited version:

"I think that the Fed's role in setting interest rates is vastly overstated, and that this fiction is maintained because