Monday, January 30, 2012

Theology and the chairman of the fed

As an illustration, in a certain way, what the chairman of the fed does could be compared to the complexity of being God and his providence. When the fed raises the interest rates, only a minimal change will effect the entire economy. 

For bankers, low interest rates are great because they can borrow cheaper and have higher interest income. For some macro-economists, lowering interest rates curbs the national deficit, inflation and loss of jobs in the long term. 

For each and everyone a macro decision of this order of magnitude means something different and its the job of the Fed's chairman is to kind of balance the economy according to his price stability and unemployment rate goals. 

God makes a decision on the weather, for instance. This simple difference makes a world of difference for agriculture, for the fashion retail business, for so many personal decisions of millions if not billions of people. 

The omniscience, omnipresence and omnipotence of God is something which can never be understood in its entirety, but from this very simple analogy we can get a grasp of how complex it must be to "be God". 

No comments:

Linkedin profile

View David An's profile on LinkedIn