Suppose the central bank controls 51% of hashing power and wants to achieve a stimulus equivalent to a 3% increase in inflation. ...
It is pretty clear that the blockchain gives central banks unprecedented control over monetary policy. All they have to do is command 51% of hashing power. An absolutely negligible investment for such a well-capitalized institution.
Not sure you correctly understand the 51% hashing power weakness.
But that aside the real issue with Bitcoin is the
open-source nature in contrast to the
closed-source nature of current monetary policy. The result of closed-source is
greater information asymmetry amongst market participants leading to inefficiencies in the market.
If central banks attempted to conduct monetary policy through an
open-source instrument, like a blockchain, then market participants would adapt so swiftly and severely via algorithms and high frequency trading that it would render the manipulations powerless because there would be no uncertainty in the market place as a result of the open source blockchain.
Statist monetary policy must be conducted
in secret or it will not be successful at allowing the rent seekers to take advantage of market inefficiencies as a result of their access to power centers. Look at how vigorously the
Federal Reserve attempted to defend Bloomberg when it came to disclosing bailout funds.