Central Banking

Tuesday, March 5th, 2019

The Great Recession of the 2000s shaped a generation of macro- and monetary economists. We can debate the details. But three things warrant widespread agreement.

Thursday, February 14th, 2019

Central banking should be boring. Surprises in the stance of monetary policy are almost always a bad thing. The best thing a central bank can do to achieve macroeconomic stability is to be very open about its future intended policies.

Monday, January 21st, 2019

Chairman Powell's track record suggests that he has a grasp on fundamentals and that he is dedicated to reversing a decade of monetary imbalance.

Tuesday, January 15th, 2019

That one set of payments providers gets access to the core payments system while another is shut out seems quite arbitrary.

Thursday, January 10th, 2019

While it is appropriate for monetary policy to be removed from active political interference, it does not follow that monetary policy ought not be judged according to democratic standards.

Wednesday, January 9th, 2019

Interest rate manipulations by central banks through monetary policy are similar to price controls on other goods.

Monday, December 31st, 2018

European payments just got a whole lot faster. But faster speeds come at a cost.

Friday, December 28th, 2018

The Fed’s failure to shrink its balance sheet and commitment to paying above-market interest on reserves could undermine its ability to combat the next recession.

Wednesday, December 19th, 2018

Edward Stringham appeared on Yahoo Finance ahead of major rate decisions by the Fed

Tuesday, December 4th, 2018

President Trump violated long-standing norms with his swipes at the Fed. But the notion that his predecessors kept their noses out of the Fed’s business is largely a myth.

Sunday, December 2nd, 2018

Wouldn’t the world fall apart? Not at all. I predict that the news would be front page for the usual 48-hour news cycle and then the world would move on. No big deal. There is no downside. And a huge upside. All it requires is some political courage.

Tuesday, November 20th, 2018

By making these lost Spooner treatises available again after more than a century in seclusion, it is my hope that they will both further our historical understanding of the time in which they were written and offer relevant insights to the evolution of economic ideas in the present day.

Monday, November 19th, 2018

Sweden has been at the forefront of monetary experimentation for centuries. Now they have the distinction of being the only country in the world to experience declining growth in cash in circulation.

Sunday, November 18th, 2018

The public discourse concerning the state of the financial system that once took place in trade associations and committees of concerned citizens has disappeared, replaced by a cold and sterile managerialism practiced by an insular and self-perpetuating macroeconomic elite.

Friday, November 2nd, 2018

Monetary policy has changed significantly in the last decade. How should the Fed move forward?

Thursday, November 1st, 2018

When considering why central bankers do what they do, we often focus on their intentions or motivations. Instead, we should look for patterns of behavior that have adaptive value within the context central banking.

Monday, October 29th, 2018

A new NBER working paper considers how actions in the federal funds market affect stock prices and trade volume.

Thursday, October 25th, 2018

Bagehot’s rules are ultimately geared toward assisting illiquid financial organizations but allowing insolvent ones to fail. The Fed went out of its way to support insolvent organizations.

Monday, October 15th, 2018

Under ideal conditions, stablecoins would come to exist due to pure market demand rather than as a reflection of the regulatory climate that has limited access to conventional banking services.

Friday, September 28th, 2018

Despite recent events in Venezuela, hyperinflation has become increasingly rare.