Monetary Economics
Monetary policy influences inflation, employment, and economic activity. A stable but dynamic monetary system is vital for supporting economic growth, individual liberty, and a prosperous society. Therefore, we examine the causes and consequences of monetary policy (including inflation), identify ideal and practical steps towards a better monetary policy regime, and look at monetary alternatives and financial regulation.
Research Publications for Monetary Economics
On the origins of cryptocurrencies
WJ Luther, N Sridhar
A Modern Guide to Austrian Economics, 200-215, 2022
Seigniorage payments and the Federal Reserve’s new operating regime
BP Cutsinger, WJ Luther
Economics Letters 220, 110880, 2022
Central bank independence and the Federal Reserve’s new operating regime
JL Jordan, WJ Luther
The Quarterly Review of Economics and Finance 84, 510-515, 2022
RE Wright
Journal of Interdisciplinary History 52 (4), 624-626, 2022
The Value of Bitcoin in the Year 2141 (and beyond!)
JR Hendrickson, WJ Luther
The Economics of Blockchain and Cryptocurrency, 51-68, 2022
Articles
The New Zimbabwean ZiG: Sixth Time a Charm?
“Even the most faithfully implemented commodity-backed money standard is fundamentally predicated on the integrity and competence of its overseers.” ~Peter C. Earle
A Better Model Won’t Fix The Fed
“The whole point of expectations-responsive monetary policy is to remove the discretionary and technocratic elements from central banking. Disappointingly but unsurprisingly, the Fed is doing the opposite: doubling down on discretion and technocracy.” ~Alexander W. Salter
Inflation We Can Feel But Don’t Measure
“Regardless of whether one thinks that the CPI should include interest rates and/or asset prices, it seems clear that consumers factor in these costs when evaluating the cost of living.” ~Joshua R. Hendrickson
How the US Treasury Induced a New Era of Swiss Monetary Policy
“Central bankers are told that their domestic monetary policy obligations…must be balanced with or even subjugated to currency management practices that accommodate American exporters and competitors more broadly.” ~Mariana F. Trujillo and Peter C. Earle
AIER Everyday Price Index Hits All-Time Record in March 2024
“It is increasingly clear that the choice to stop rate hikes at the 5.25 to 5.50 policy rate range was at best premature and may ultimately prove insufficient.” ~Peter C. Earle
The Fed and Political Independence: It’s Complicated
“We should focus less on who’s allowed to run the Fed and more on what the Fed’s allowed to do in the first place.” ~Alexander W. Salter