Central Banking

Monday, April 16th, 2018

If macroeconomists do not want to take responsibility for crises, then they should refrain from endorsing unstable monetary institutions.

Tuesday, April 10th, 2018

A trade war would not only make the United States less productive. It would also make monetary policy more difficult.

Wednesday, April 4th, 2018

Through incentive and information problems, the Fed–rather than free markets–caused the 2007-8 financial crisis.

Saturday, March 31st, 2018

Financial markets naturally promote monetary equilibrium. At their best, central banks attempt to emulate the functions of financial markets.

Monday, March 5th, 2018

Discretionary central banking places immense information burdens on central bankers.

Sunday, March 4th, 2018

If the monetary authority is targeting inflation or nominal income growth, fiscal policy is either unnecessary or ineffective.

Thursday, February 15th, 2018

Dear Mr. Keynes: Much of your open letter to President Roosevelt, seems so appropriate to be above criticism.... Unfortunately, portions of your advice seem somewhat perplexing.

Sunday, February 11th, 2018

Yellen’s Fed did little to put monetary policy on a sustainable long run path.

Friday, February 9th, 2018

Central banking is the institutionalization of irresponsibility in monetary policy.

Monday, February 5th, 2018

The chief problem with modern central banking is that it’s discretionary.

Friday, January 26th, 2018

Victor Morawetz worried that regional differences would undermine central bank independence.

Wednesday, January 17th, 2018

My theory: the paper is written for bankers and policy makers of an older generation who have heretofore ignored or dismissed crypto-based innovations. They might know something about money and banking. But they know next to nothing about computer science, digital resources, and cryptography. As a result, the paper speaks in the plainest-possible English about these technical topics. It then turns to debunking the most common myths about crypto.

Sunday, January 14th, 2018

Immediately following the inauguration in 1933, President Franklin D. Roosevelt focussed on what his advisers told him was the real problem: the fall in the prices of everything. The theory, which is completely wrong, is that falling prices were causing the fall in productivity. They believed that by boosting the prices of stocks and other financials, in addition to commodities, profits and wages would rise and recovery would dawn. They would achieve this by wrecking the dollar. 

Wednesday, January 3rd, 2018

Banks improved financial intermediation, but also made it much easier for rulers to reallocate resources to the themselves while indirectly imposing costs on society at large.

Monday, January 1st, 2018

Allan H. Meltzer’s influence as a monetary historian is undeniable. His role in advancing monetary disequilibrium theory should not be overlooked.

Wednesday, December 27th, 2017

A new NBER working paper explains how too-big-to-fail policy encourages risky investments by small banks as well.

Thursday, December 21st, 2017

The extreme focus on price level stability should have been put to rest by the 2008 financial crisis. But conflicting narratives have enabled it to live on.

Thursday, December 14th, 2017

The Fed's balance sheet crowds out bank lending, stifling economic growth.

Wednesday, November 15th, 2017

If we want sound money, we cannot afford to ignore the political process.

Friday, September 22nd, 2017

Just how much will peoples’ attitudes have to change to allow widespread adoption of a private cryptocurrency like Bitcoin or Ethereum?