Top four myths of central banks

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 it is convenient both for the Fed and for the rest of us.

I think that there are multiple myths about the Fed's powers that have taken hold of our collective consciousness, and led us into an investing netherworld.