Final Word from Tuesday, September 19, 2017

If wealth redistribution is the essence of monetary policy, as CNB Vice Gov. Mojmír Hampl states, part of honest economic analysis - as opposed to propaganda - must be to identify who benefits from the policy and what havoc it wreaks on others. Economist Vladimír Pikora of Next Finance did this by warning in Reflex that central banks are probably going to cause a major financial crisis with their policies. Hampl responded with insults, saying that few "real economists" think this. Economist Tomáš Munzi of VŠE wrote in MFD that speculators profited from the CNB's currency intervention and that wage convergence with Europe was set back by decades. Hampl again responded with insults - did Munzi bet wrong on the crown? The 2013 devaluation was one of the biggest redistributions of wealth in Czech history, but the next financial crisis will be even bigger. Hampl, like Antonín Zápotocký in 1953, is on the side of those who will benefit from it. [Czech Republic commitment Czech National Bank]

Glossary of difficult words

Antonín Zápotocký - the Czechoslovak president who oversaw the 1953 monetary reform;

havoc - widespread destruction;

to wreak - to cause (a large amount of damage or harm).

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