Finance, Forex and Investments

Explain why it is better for a central bank to set its monetary policy according rules rather than discretion?

Explain why it is better for a central bank to set its monetary policy according rules rather than discretion. i kinda need like a long answer and alot more detailed and by the way can i ask where you got your information from?

Public Comments

1. presumably to prevent human error in panic situations ,the rules have usually been put together by learned men over a period of time.some times however experience is discarded.i refer to the bank of englands recent orgy of printing money .i think back to the same action in the weimar republic-starting point in1918 8marks=£I by the early 1920s it cost 10,000,000 marks to post a letter schoolteachers were paid daily to buy food daily as the cost of a loaf would rise by 50% by tomorrow morning that is how hitler came to power -he stopped them starving! anyway we are told it wont happen but unless that money is retrieved by the bank and burned that inflation must come through.i cant see a way the money can be taken from those who hold it wihout compensation but somehow it must be destroyed