On the other hand the reason why so many modern economies have "outsourced" the decision making on central banking is because when it was up to them, they'd pull the short-term gain, long-term collapse lever too often.
It took me a while to put a finger on what seems wrong about this take. I don't think politicians have "outsourced" the work to the invisible hand (n.b.: not banks per se) because they failed to make long-term decisions. I think they "outsourced" the work because it reduces their responsibility in the eyes of the public.
The point is that the invisible hand also makes short-term decisions, in addition to all the other problems it produces.
