Central Banking

Sunday, September 15th, 2019

Following the last few years of record-low yields, first on government debt and more recently on private sector debt, we have seen an unexpected twist: the renewal of this long-dead market.

Tuesday, September 3rd, 2019

In the long run, the deleterious effect of negative interest rates turns economic theory on its head.

Wednesday, August 28th, 2019

Reserve Banks brought monetarism and rational expectations into the monetary policy discussion, and, more recently, they have fostered dissenting views on the Fed’s role as a lender of last resort and the effectiveness of quantitative easing.

Saturday, August 17th, 2019

We do not want elected officials to police the monetary policy makers. But monetary policy makers have clearly demonstrated that they are incapable of policing themselves. 

Thursday, August 8th, 2019

the Fed should stay in its lane and stop trying to re-invent what banks are already doing.

Wednesday, July 31st, 2019

Edward Stringham speaks on Yahoo Finance on the strange timing of the Fed's interest rate moves. 

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.