Central Banking

Wednesday, July 17th, 2019

A government money monopoly, writes Judy Shelton, "invites a more sinister abuse of government power - even tyranny - as government precludes market entry to alternative issuers."

Sunday, July 14th, 2019

It is the perfect time for Powell to set right the financial sector and establish a return to normalcy.

Thursday, July 11th, 2019

The Federal Reserve is preparing to cut interest rates for the first time in a decade because it sees a cooling global economy and no sign of overheating in the jobs market at home. AIER President Edward Stringham joins Bloomberg to give his insight.

Wednesday, July 3rd, 2019

Lagarde’s experience as a policy-maker and clear communicator may prove very successful. 

Thursday, June 27th, 2019

For hundreds of millions of citizens across the world, digital currencies like Bitcoin, Ripple, and potentially even the Libra don’t pose a threat to financial stability. They offer an escape from chronic financial instability and high and variable rates of inflation that result from poorly managed government monies.

Wednesday, June 26th, 2019

The Fed chairman insists that the central bank will make independent decisions but there is no way fully to insulate monetary policy from politics. 

Tuesday, June 25th, 2019

If the managers of the dollar instead seek isolation, protection, sanctions, blacklisting, and devaluation, powerful market forces will continue to seek alternatives.

Tuesday, June 25th, 2019

A decade has passed since the financial crisis of 2008-9. Unfortunately, the Fed is more politically exposed (and policy constrained) than ever.

Thursday, June 20th, 2019

The trade war is heating up. Unfortunately, the Fed’s current framework will exacerbate the damage.

Wednesday, June 19th, 2019

Under a loose-money regime, the powerful get the new money first. 

Wednesday, June 5th, 2019

The problem with constrained discretion is that it leaves up to central bankers the decision when to switch from rule-like behavior to discretionary behavior.

Wednesday, April 24th, 2019

The long history of central banking, and especially over the last 100 years of paper monies and out-of-control government deficit spending partly funded by “monetization” of the debt, has more than clearly demonstrated that the epoch of modern central banking needs to come to an end.

Thursday, April 11th, 2019

The president’s decisions to nominate Stephen Moore and Herman Cain leave a lot to be desired. But that is no excuse for perpetuating the myth that the Fed has been independent up until now.

Friday, April 5th, 2019

There is growing support for the idea that meddling with market interest rates is a bad idea. Interest rates coordinate intertemporal production plans, and any attempt to alter them will entail undesirable unintended consequences. 

Thursday, April 4th, 2019

Government expenditures can be funded by increasing reserves at the Federal Reserve. But limits on the demand for reserves mean inflation will follow.

Tuesday, April 2nd, 2019

Some scholars argue that ordinary citizens should be allowed to open bank accounts at the Fed. Is this the best way to reduce financial exclusion?

Friday, March 29th, 2019

The problem with Moore is not that he doesn’t have a Ph.D. The problem is that he is less like Alan Greenspan, and more like Arthur Burns.

Monday, March 25th, 2019

The Fed could be much better than it is. But it could also be much worse. Adding Stephen Moore to the Board of Governors would be a step in the wrong direction.

Friday, March 15th, 2019

Control over money is the legal privilege of the monetary authority. But the monetary authority is not above reproach.

Tuesday, March 12th, 2019

The Fed has a monopoly on the creation of base money, the fundamental asset underlying the banking and financial system. And over decades, with each instance of financial turbulence, the Fed has become less constrained in how, when, and why it creates base money.