As Winter Arrives, One Group Could Save The Iron Throne From Plunging Further Into Chaos
It seems the incestuous Queen Regent of the Iron Throne knows more about wine and sexually pleasing her brother than she does about economics. Cersei Lannister’s leadership is driving the economy of the Seven Kingdoms toward a fiscal cliff. This will decimate the economies of the Seven Kingdoms. It will also bankrupt House Lannister.
The financial website, Business Insider posted an interesting video about the economics of the Westeros. Westeros is the fictional land in the HBO series Game of Thrones. Business Insider scoured the five books of the series in order to make their economic predictions for the kingdom. The main issue will be Zimbabwe style hyperinflation.
Forbes Magazine Agrees With Business Insider But For Different Reasons
Forbes also jumped on the bandwagon. The economists at Forbes came to the same conclusion as Business Insider. Westeros is heading for a fiscal cliff. The Forbes staff came to the same conclusion as BI. Yet, the Forbes team had a different rationale and a different premise.
Adam Ozimek contends that Westeros will soon see hyperinflation which will then lead to economic chaos for House Lannister because the Iron Throne lacks a central banking system. Ozimek also pointed out monarch, in general, have a terrible track record when it comes to monetary and fiscal policy.
He also surmises that the power structure of Westeros makes it nearly impossible to have a central banking system. There is one group who could create and serve as an effective central bank, The Night Watch.
Would The Night Watch Make For Good Central Bankers For Westeros?
Ozimek explains why The Night Watch would serve as excellent central bankers:
The watch operates independently of the crown, has existed for thousands of years, and is dedicated to the public good. The longevity of the Watch is undebatable, as it was reportedly founded 8,000 years before the time of Game of Thrones. Their staunch independence is evidenced by the neutrality they maintained during the rebellion that unseated the Targaryens. The Watch’s military might ensures they can maintain that independence. Their dedication to the public good is seen in the mission of the Watch, which is the protection of the Seven Kingdoms.
Members of the watch currently serve in one of three groups: Rangers, Builders, and Stewards. It’s easy to imagine adding Economists as a fourth group, and adding price stability and full employment to an oath that all members must swear to. Public acceptance would likely require the crown mandating that Night’s Watch currency be accepted as legal tender. But after that, the Night’s Watch could independently determine the money supply and even conduct monetary policy.
In short, it’s easy to understand why Westeros lacks a central bank, but I don’t think it is hopeless. I believe the Night’s Watch has the institutional features that would allow it to serve as a successful central bank.