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.

Articles

The Monetary Genius of Arthur Laffer

John Tamny July 9, 2021

“How Arthur Laffer dealt with Milton Friedman on a monetary matter of utmost importance says so much about his genius as a thinker, but it also says it all about him as a person. He’s kind and generous in addition to being brilliant. Read The Emergence of Arthur Laffer to see why.” ~ John Tamny

The Adverse Economic Consequences of “Basic Income”

Daniel Mitchell July 8, 2021

“Swiss voters overwhelmingly rejected a referendum for basic income back in 2016. Further, Joe Biden expressed skepticism about the idea back in 2017, but he obviously has had a change of heart, given his current support for big, per-child handouts.” ~ Daniel J. Mitchell

To CBDC or Not to CBDC?

J.P. Koning July 5, 2021

“The risks of building a US or Canadian CBDC are all worth taking on if the problems that they solve are significant. Unfortunately, some of the problems that CBDC advocates want to target, like the threat of China, aren’t really problems. Others, like the stimulus payments problem, can’t be solved by a CBDC.” ~ J.P. Koning

Enough About Interest Rates!

Alexander W. Salter July 3, 2021

“We need to change the public conversation surrounding monetary policy. Talking about the Fed’s activities in terms of interest rates is easy, but deeply flawed. It is better to keep an eye on more relevant variables, like the overall size of the balance sheet.” ~ Alexander William Salter

Remembering Steve Horwitz

William J. Luther June 30, 2021

“It is difficult to think about the world getting better and better when dealing with the loss of a friend. But I am sure Steve would continue to insist that it is. Deep down, I know he is right. Indeed, it has never been easier to remember and celebrate the lives of those who have passed away—to watch them, hear them, read their words, or build on their ideas.” ~ William J. Luther